2023-04-27 07:55:54 ET
Domino's Pizza ( NYSE: DPZ ) gained in early trading on Thursday after posting a mixed Q1 earnings report with revenue up 1.0% to $1.02B and EPS coming in at $2.93 vs. $2.69 consensus.
Global retail sales grew 5.9% in the quarter, excluding the negative impact of foreign currency. U.S. same store sales were up 3.6% and international same store sales (excluding foreign currency impact) grew 1.2%. DPZ said its market basket pricing to stores increased 4.6% during the quarter.
Net income increased $13.8M during the quarter primarily due to higher income from operations of $12.9M. Lower net interest expense resulting from higher interest income on cash equivalents also contributed to the increase in net income. Those increases were partially offset by an increase in the provision for income taxes of $1.8M due to higher income before provision for income taxes, partially offset by a lower effective tax rate.
During Q1, DPZ repurchased and retired 100,515 shares of stock for a total of $30.1M. DPZ had a total remaining authorized amount for share repurchases of $380.3M at the end of the quarter.
Domino's ( DPZ ) had Q1 global net store growth of 128 stores, comprised of 22 net U.S. store openings and 106 net international store openings.
CEO update: "As I reflect on the first quarter, I can't help but be encouraged by the resilience of our business model and the competitive advantage our franchisees and team members bring to Domino's Pizza... Our continued evolution from a U.S. delivery business to a global pizza company with strength in both delivery and carryout keeps me bullish on our future."
Looking ahead, the pizza chain operator guided for capital expenditures of $90.0M to $100.0M. Domino's Pizza ( DPZ ) noted that it increased the U.S. digital per-transaction technology fees that are recognized as the related U.S. franchise retail sales occur by $0.08 to $0.395.
Shares of Domino's gained 2.30% in premarket trading to $346.83 vs. the 52-week trading range of $291.00 to $426.44.
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Domino's Pizza adds 2% after seeing U.S. and international sales increase