Domino’s Pizza stock falls after profit tops views but revenue misses, as market basket pricing drops

Shares of Domino’s Pizza Inc.
DPZ,
-0.62%
dropped 1.9% in premarket trading Monday, after the pizza chain reported second-quarter profit that topped expectations but revenue that surprisingly declined, as market basket pricing to stores fell. Net income rose to $109.4 million, or $3.08 a share, from $102.5 million, or $2.82 a share, in the year-ago period. That beat the FactSet consensus for earnings per share of $3.06. Revenue declined 3.8%, to $1.024 billion from $1.065 billion, while the FactSet consensus was for a rise to $1.072 billion. U.S. same-store sales edged up 0.1%. Market basket pricing to stores fell 2.4%, while U.S. franchise royalties and fees increased. The earnings report comes about two weeks after the stock soared 11.1% on July 12, after Domino’s said it will start having its menus listed on the Uber Eats and Postmates food-delivery apps starting in the fall. The stock has run up 16.7% over the past three months through Friday, while the S&P 500
SPX,
+0.03%
has gained 9.7%.