Domino's Pizza reported second-quarter revenue of $1.19 billion as supply-chain growth offset slower demand at its restaurants.
Domino's Pizza reported second-quarter revenue of $1.19 billion, slightly exceeding Wall Street estimates of $1.18 billion. The Ann Arbor, Michigan-based company saw a 4.3% revenue increase, driven largely by a 6.5% rise in supply-chain revenue to $731.7 million. This growth was fueled by higher order volumes from stores and a 2.2% increase in food-basket pricing. While the supply-chain business performed well, same-store sales in the U.S. rose only 0.1%, falling short of the 0.62% growth analysts expected. This slower pace reflects a period of cautious consumer spending due to high living costs and a sluggish labor market. International same-store sales also saw a surprise decline of 0.1%. Retiring CEO Russell Weiner noted that order growth remains the primary driver of long-term success, even as industry demand weakened. Despite the robust supply-chain performance, quarterly profit reached $4.07 per share, which was lower than the $4.17 per share predicted by analysts. Shares rose approximately 7% in premarket trading following the report.