Domino's Pizza's share price jumps after tasty fourth quarter results

 
James Nickerson
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Domino's Reports Almost 20 Percent Increase In Quarterly Profits
Domino's shares jumped on the earnings report (Source: Getty)

Domino's Pizza's share price surged after reporting better than expected fourth quarter results, including double-digit same-store sales growth.

The pizza delivery company reported revenue of $741.2m (£530.6m) during the quarter, pushing its share price up more than 10 per cent.

Domino's said revenue was helped by higher supply chain volumes and sales of equipment to stores in connection with its store reimaging program. The company also benefited from an extra week of sales in the fourth quarter.

Read more: Domino's buys a slice of the German pizza market for $86m

The company reported earnings per share of $1.18 for the fourth quarter of 2015, up 38.8 per cent from year-on-year.

Domino's also reported net income of $62.8m, compared with $48m a year ago. Excluding items such as recapitalisation expenses and the extra week of sales, the company reported earnings of $1.15 a share, up from 91 cents a year ago.

Yesterday the company also announced a 38 cents per share quarterly dividend for shareholders, a 22.6 per cent increase over the previous quarterly dividend amount.

"Our network of strong franchisees has become even more profitable during these years of continued positive same store sales growth," said J. Patrick Doyle, Domino's president and chief executive.

Read more: What can we learn from Domino's and McDonald's?

"Great store economics around the world have led to accelerated unit growth. It's a positive cycle and the momentum continued through 2015," he added.

Same-store sales grew 10.7 per cent at Domino's domestic franchise stores, as company-owned domestic stores logged 10 per cent growth.

The company has been successful in recent years after embracing the digital shift to ordering food.

The company ended the quarter with 88 more domestic stores than it had at the beginning of the quarter, and it had added another 323 stores internationally.

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