UPDATE 2-Domino’s profit tops view; eyes on ‘artisan’ pies
* Optimistic about acceptance of new “artisan” pizzas* Shares jump almost 8 percentOct 18 (Reuters) - Domino’s Pizza Inc delivered
better-than-expected quarterly profit and said it is optimistic
about sales of its new “artisan” pizzas, sending its shares up
almost 8 percent.The pizza delivery chain on Tuesday said third-quarter
sales at Domino’s restaurants open at least a year were up 3
percent in the United States and up 8.1 percent
internationally. Analysts said the growth in same-restaurant
sales — a gauge of restaurant performance — topped their
targets.Ann Arbor, Michigan-based Domino’s last year changed its
U.S. pizza recipe to make it more flavorful, a move that
bolstered sales.Now, Domino’s executives hope the company’s new line of
$7.99 “artisan” pizzas will further increase sales in the
fourth quarter.”We are certainly optimistic,” Chief Executive J. Patrick
Doyle said of the new, more upscale pizzas on a conference call
with analysts.Oppenheimer analyst Brian Bittner said in a client note
that fourth-quarter results could be boosted by “an
acceleration in online orders, the new artisan pizzas,” and
orders from fans watching pro fotball on TV.Domino’s had third-quarter net income of $22.1 million, or
36 cents per share, up from $16.6 million, or 27 cents per
share, a year earlier.Excluding one-time items, profit was 35 cents per share,
topping analysts’ average estimate by 2 cents, according to
Thomson Reuters I/B/E/S.The pizza delivery chain, which competes with Papa John’s
International Inc and Yum Brands Inc’s Pizza
Hut chain, said revenue rose 8.3 percent to $376.3 million.Same-restaurant sales at Pizza Hut U.S. were down 3 percent
in the latest quarter. In China, where Pizza Hut is more
upscale than in the United States, same-store sales grew 19
percent.Domino’s shares were up 7.7 percent in afternoon trading on
the New York Stock Exchange.