Domino’s (DPZ) reported weaker-than-expected sales in the first quarter, but posted a first-quarter profit that beat Wall Street’s estimates.
The pizza chain earned $2.20 per share on $835.96 million in revenue. A consensus forecast of analysts polled by Bloomberg expected earnings of $2.09 per share on $849.75 million in revenue.
Same-store sales, a key metric for restaurants, rose by 3.9% in the quarter in the U.S.—missing expectations for 4.2% growth. Internationally, same-store sales grew 1.8%, below consensus estimates for 2.4% growth during the first quarter.
Still, the pizza chain’s stock jumped 4% in pre-market trade, as investors momentarily applauded the strong profit beat.
Domino’s reported that net income rose 4.3%, or $3.9 million, during the first quarter driven by higher royalties from franchised stores both in the U.S. and internationally.
“We remain focused on improving international comps, but I am encouraged by the strong unit growth in the first quarter - and remain confident in the fundamentals related to market share, retail sales growth and unit economics within this terrific segment of our business,” CEO Rich Allison said in a statement.
Shares of Domino’s have risen 9% so far in 2019 but have underperformed the broader market. The S&P 500 (^GSPC) has jumped nearly 18% in the same time period.
Domino’s earning conference call kicks off at 10 a.m. ET.
Heidi Chung is a reporter at Yahoo Finance. Follow her on Twitter: @heidi_chung.
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