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Published: Oct 18, 2016 2 min read
Inside A Domino's Pizza Inc. Location As Chain Tries To Draw More Customers
A hand-tossed sign stands in front of an employee preparing a customer's order at a Domino's Pizza Inc. restaurant in Rantoul, Illinois, U.S., on Thursday, Oct. 8, 2015.
Bloomberg via Getty Images

Domino's Pizza on Tuesday reported a bigger-than-expected 17 percent jump in quarterly revenue as its U.S. division overcame intense competition that is taking a bite out of industry sales.

Sales at domestic franchise units open at least one year were up 12.9 percent in the third quarter ended Sept. 11. Analysts had expected a rise of 9.4 percent, according to polling firm Consensus Metrix.

Domino's results come as Wall Street analysts are tempering expectations for rivals such as McDonald's and Dunkin', amid intensifying competition from upstart chains, meal-kit sellers and grocery stores - where prices versus restaurants are at a 30-year low.

The world's biggest pizza delivery chain is a leader in digital ordering. Its main rival, Pizza Hut, which has been struggling, reported a 2 percent decline in U.S. same-store sales for the latest quarter.

Domino's net income jumped almost 25 percent to $47.2 million, or 96 cents per share, topping the average analyst estimate of 90 cents per share, according to Thomson Reuters I/B/E/S.

The Ann Arbor, Michigan-based company had 12 percent fewer shares in the latest quarter, compared with the year-earlier period, which also boosted per-share earnings.

Total revenue climbed 17 percent to $566.7 million, beating analysts' average estimate of $542.6 million, also helped by higher supply chain revenue and new store openings.

Domino's shares were up 3 percent at $156.70 in premarket trading.