(Reuters) – Domino’s Pizza reported better-than-expected first-quarter revenue on Monday as the restaurant chain’s U.S. customers took advantage of an improved loyalty program and other promotional offers.
Domino’s shares rose 4.5% in pre-market trading, while sales in the United States also exceeded expectations. On a comparable store basis, they showed an increase of 5.6%, compared to 4.04% anticipated by analysts, according to an LSEG consensus.
Managing Director Russell Weiner says he has seen growth in the number of orders across all income categories in the country.
Domino’s revamped its loyalty program in September and partnered with Uber Eats, helping to revive demand for delivery.
The group says it is on track to end the year with 3% or more of sales coming from the Uber Eats channel.
Total revenue in the first quarter rose 5.9% from a year earlier to $1.09 billion (€1.02 billion), also above analysts’ expectations. $1.08 billion.
The increase in franchisee royalties also contributed to the group’s first-quarter profit rising to $3.58 per share, compared to analysts’ expectations of $3.39.
(Reporting Juveria Tabassum, Augustin Turpin, edited by Kate Entringer)
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