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Domino's Pizza Q2 Profit Rises as Same-Store Sales Slow

Wall Street Journal US Business •
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Domino's Pizza reported higher profit and revenue in the second quarter but saw U.S. same-store sales growth slow dramatically to 0.1% from 3.4% a year earlier. The slowdown in comparable sales marks a significant deceleration for the pizza chain.

The company posted a profit of $135.8 million, or $4.07 a share, compared with $131.1 million, or $3.81 a share, a year earlier. Analysts polled by FactSet expected a profit of $138.9 million, or $4.17 a share, meaning the company missed consensus estimates on the bottom line.

Revenue rose to $1.19 billion from $1.15 billion a year prior, slightly beating analysts' forecast of $1.18 billion. Revenue growth was driven by higher franchise royalties and advertising revenues, as well as an increase in order volumes and food basket pricing to stores, the company said. The results reflect a mixed quarter where top-line growth offset weakening domestic same-store sales momentum.