Feb 20 (Reuters) - Domino’s Pizza Inc reported a 28.3 percent rise in quarterly profit on Tuesday, bolstered by higher royalty and supply chain revenue from its franchisees, sending its shares up 4.4 percent in premarket trading.
Net income rose to $93.3 million, or $2.09 per share, in the fourth-quarter ended Dec. 31, from $72.7 million, or $1.48 per share, a year earlier.
Domino’s largely benefits from the high-margin royalty fee it charges its franchise stores and the revenue it gets from ingredients and the equipment it supplies them.
Same-store sales at its company-owned outlets in the United States rose 3.8 percent and 4.2 percent at its franchise stores, but both figures missed analysts’ expectations.
Analysts’ had predicted same-store sales to rise 5.93 percent at company-owned U.S. stores and 6 percent at its franchise stores, according to Thomson Reuters I/B/E/S.
Same-store sales in its international business rose 2.5 percent, but missed analysts’ expectations of 5.4 percent.
Revenue rose 8.8 percent to $891.5 million, missing analysts’ estimates of $906.4 million.
The company recorded global net store growth of 422 stores in the fourth quarter, including 96 domestic stores and 326 international stores. (Reporting by Nivedita Balu in Bengaluru)