SUBSCRIBE NOW
99¢ per month for 3 months
SUBSCRIBE NOW
99¢ per month for 3 months

Domino’s extends streak of U.S. sales growth

Associated Press

Ann Arbor — Domino’s sales jumped 12.2 percent at established U.S. locations in the final months of 2016, extending the pizza delivery chain’s streak of quarterly sales growth to nearly six years.

The Ann Arbor, Michigan company notched its 23rd straight quarter of domestic sales growth at established locations in part by offering easier ways to order online, on mobile phones and even social media. For all of 2016, the sales figure rose 10.5 percent, following a 12 percent increase in 2015 and a 7.5 percent increase in 2014.

Domino’s delivery model also fits with the shift toward convenience in the restaurant industry, with several fast-food chains just starting to look at options like delivery and online ordering to cater to those with less patience for waiting in lines at stores. Rival Pizza Hut, which is owned by Yum Brands and saw its U.S. sales fall 4 percent in the fourth quarter, has partly blamed its image as a sit-down, red-roofed restaurant for its slumping sales.

Previously, Domino’s CEO Patrick Doyle has said the company is positioned to take market share from smaller players in the pizza industry, which is more fragmented than the burger industry. The company has also noted that it has the resources and scale to invest in digital ordering platforms and discounted pizza, in a way that local pizzerias may not be able to.

Overseas, Domino’s said international sales rose 4.3 percent at established locations for the quarter.

For the three months ended Jan. 1, Domino’s earned $72.7 million, or $1.48 per share. That was more than the $1.43 per share analysts surveyed by Zacks Investment Research expected.

Total revenue for the quarter was $819.4 million in the period, also beating Street forecasts.

For the year, the company reported profit of $214.7 million, or $4.30 per share. Revenue was reported as $2.47 billion.

Shares of Domino’s Pizza Inc., which have risen 16 percent since the beginning of the year, rose more than 1 percent before the opening bell Tuesday.