Domino's Q2 Profit Declines, Yet Tops View - Update

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Ann Arbor, Michigan-based pizza delivery company Domino's Pizza Inc. (DPZ) reported lower profit for the second quarter, negatively impacted by certain charges, foreign currency exchange rates on international royalty revenues and lower operating income from domestic store operations. On an adjusted basis, earnings per share beat analysts' estimates by a penny.

Net income was down to $14.53 million or $0.25 per share from $18.73 million or $0.32 per share for the year-ago period.

Adjusted net income for the quarter was $0.21 per share, down from $0.22 per share a year ago. After-tax total of items affecting comparability was $2.38 million as against $5.89 million last year.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.20 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues for the quarter decreased to $316.63 million from $334.35 million in the year-ago period. Three analysts had consensus revenue estimate of $310.27 million
for the quarter.

Domestic same-store sales were down 0.7%, while international same-store sales grew 4.1%, posting its 62nd consecutive quarter of comp sales growth.

Revenue from domestic company-owned stores declined to $76.74 million from $85 million. Domestic franchise sales were almost flat at nearly $36 million. Domestic supply chain sales were $172.54 million compared to 179,57 million last year, while international sales dropped to $31.67 million from $33.97 million last year.

First-half net income increased to $38.3 million or $0.67 per share from $32.85 million or $0.55 per share in the same period in 2008. Total revenues for the two fiscal quarters were $638.46 million compared with $673.36 million for the same period in 2008.

DPZ is currently trading at $8.02 on the NYSE, down 4.18%.

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