REUTERS - Domino's Pizza Inc on Thursday reported quarterly revenue below analysts' estimates for the second straight quarter as the company struggles with a strong dollar.
Shares of the company, whose profit also fell short of analysts' estimates, were down 4.2 percent in premarket trading on Thursday.
Domino's said last week that third-quarter profit would be reduced by 6 cents per share due to higher insurance expense related to its casualty insurance program.
Net income rose to $37.8 million, or 67 cents per share, for the quarter ended Sept. 6, from $35.6 million, or 63 cents per share, in the year-earlier quarter.
Revenue rose 8.5 percent to $484.7 million.
Analysts on average had expected earnings of 74 cents per share on revenue of $487.1 million, according to Thomson Reuters I/B/E/S.
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Revenue at most U.S. multi-national companies has been hit as a strong dollar reduces the value of overseas sales. The dollar has risen about 6 percent against a basket of major currencies this year.
Ann Arbor, Michigan-based Domino's did not disclose how much the strong dollar weighed on its quarterly results.
Domino's U.S. sales at established company-owned restaurants were up 11.5 percent for the quarter, as pre-announced, and international same-store sales rose 7.7 percent, excluding the impact of changes in exchange rates.
Both were in line with the average estimate of analysts polled by research firm Consensus Metrix.
Yum Brands on Tuesday said Pizza Hut same-restaurant sales were flat in the United States in the latest quarter.
Domino's, the second-largest U.S. pizza chain by store count, has been outperforming rivals such as Pizza Hut in the United States, helped by its digital investments, which make it easier for customers to order pizzas using methods such as smart watches and digital wallets.
(Reporting by Lisa Baertlein in Los Angeles and Sruthi Ramakrishnan in Bengaluru; Editing by Bernard Orr and Saumyadeb Chakrabarty)