Domino's revenue and profit rose, but US same-store sales barely moved

Domino's earned more and sold more. Second-quarter revenue reached $1,194.4m, up 4.3 percent from $1,145.1m a year earlier, and net income rose 3.6 percent to $135.8m, the company reported on July 20 in an 8-K filed with the SEC for the quarter ended June 14. Diluted earnings per share came to $4.07, up from $3.81. The number that drew attention sat elsewhere.

United States same-store sales grew 0.1 percent. A year earlier that figure was 3.4 percent, so the domestic system that generates most of Domino's profit barely moved on a same-store basis even as the company opened stores and pushed more volume through its supply chain arm. Company-owned domestic stores rose 2.1 percent, while franchise stores, the overwhelming majority, were flat at 0.0 percent. International same-store sales fell 0.1 percent, excluding currency effects. Growth came from elsewhere.

Russell Weiner pointed to order counts. Domino's, its chief executive said, "generated order count growth across both our delivery and carryout businesses" in a quarter where the broader United States quick-service industry faced pressure on consumer demand. Global net store growth was 209, with 26 of those in the United States and 183 abroad, lifting the worldwide count to 22,531. Supply chain revenue carried the top line, helped by a 2.2 percent rise in the prices Domino's charges its stores for food.