Due to higher prices, new promotions, and menu items, Domino’s Pizza Inc. (DPZ.N) beat Wall Street expectations for first-quarter U.S. same-store sales on Thursday. Business shares rose 5% premarket.
The pizza chain’s better-than-expected sales follow McDonald’s Corp (MCD.N) and Chipotle Mexican Grill Inc (CMG.N)’s menu price increases to counter growing raw material and labor costs.
The pizza restaurant revived its $3 Carryout Tips campaign to attract inflation-weary customers. Purchases of $5 or more earn a $3 carryout voucher.
Analysts claimed the company’s new “Loaded Tots” menu item, oven-baked potato tots with cheese and toppings in three varieties, helped boost sales in January-March.
According to Refinitiv statistics, the world’s largest pizza chain’s first-quarter U.S. same-store sales rose 3.6%, above analysts’ expectations of 1.96%.
Despite a strong dollar, sales rose 1.3% to $1.02 billion, missing analysts’ $1.04 billion projection.
Major firms such as McDonald’s and Coca-Cola (KO.N), which have broad international operations and convert foreign currencies into dollars, have warned of foreign currency challenges.
Net income rose to $104 million, or $2.93 per share, in the first quarter from $91 million, or $2.50.
