- Dominos Pizza shares rose up to 9% after Q2 earnings beat estimates
- Shares traded at $350, 8.6% higher than previous day's close
- Q2 revenue increased 4.3% to $1.19 billion, surpassing analyst estimates
Share price of Domino's Pizza in the US went up as high as 9% in early market trade, after the pizza chain company announced its results for the second quarter, exceeded Wall Street estimates, according to reports on Monday.
The company's shares were trading at a high of $350, which is 8.6% higher as compared to the previous day's close.
The firm's improved earnings were on the back of its improved supply-chain business, according to reports. Dominos' Pizza had witnessed weaker demand due to consumers cutting back on spending with regards to non-essential items.
The supply-chain business consists of the company providing raw materials for the creation of their propreitary fast food-style pizza, which includes pizza dough, manufacturing equipment and other ingredients to its pizza chains.
The revenue increases if its company-owned and franchised restuarants either have their food prices go up, or have an increased demand for the raw materials from the supply chain.
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The company atttributed this increase in the topline of its supply chain business, due to higher order volumes from their outlets as well as a 2.2% climb in food-basket prices. This indicated a moderate inflation of the price of these ingredients and supplies.
The pizza restaurant chain company's second quarter revenue increased by 4.3% to $1.19 billion compared to analysts' estimates of $1.18 billion. The Q2 revenue growth was spurred by a 6.5% uptick in quarterly revenue of its supply chain revenue to $731.7 million.
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