UPDATE 1-Higher costs slice into Domino's profit

Tue Oct 15, 2013 12:03pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

* Third-quarter earnings/share $0.51 vs est $0.52

* Third-quarter sales rise 7 pct to $404.1 mln

* U.S same-store sales up 5.4 pct, international up 5 pct

* Shares down 4 percent in midday trade (Adds CEO comments from conference call, updates share price)

Oct 15 (Reuters) - Domino's Pizza Inc, the second-largest U.S. pizza chain, reported a rare earnings miss due to higher costs, sending its shares down 5 percent as it spent more on overseas outlets and on mobile apps.

The company's earnings, after adjusting for one-time items, came in at 51 cents per share, missing analysts' expectations by a cent. This was the company's first profit miss in more than a year.

General and administrative expenses rose 8 percent.

Domino's, whose competitors include Yum Brands Inc's Pizza Hut, Little Caesars Pizza and Papa John's International Inc, franchises most of its restaurants, reducing risk and ensuring a steady stream of royalties.

The company posted strong sales growth while many other U.S. restaurant operators have struggled.   Continued...