Domino’s Pizza Says Digital Orders Approaching 30% of Sales

Domino’s Pizza Inc. (DPZ), the second- largest U.S. pizza chain, said digital orders are approaching 30 percent of all sales.

The digital orders include sales though the company’s website and smartphone applications, Chief Executive Officer J. Patrick Doyle said today during a conference call with analysts to discuss fiscal third-quarter earnings. The Ann Arbor, Michigan-based company will also expand the use of call centers to help with telephone orders in stores, he said.

Domino’s, which reported a 33 percent jump in third-quarter net income, has sought to boost U.S. sales with smartphone applications and a website that lets customers track their orders. The company in September said its apps for Apple Inc. (AAPL)’s iPhone and iPod Touch brought in sales of $1 million in a week.

Domino’s rose 7.1 percent to $29.85 at the close of New York trading, the highest price in more than four years. The shares have gained 87 percent this year.

Last month the company started advertising “artisan” pizzas with toppings such as feta cheese, salami and roasted vegetables. The higher-end $7.99 pizzas “create good profit opportunity,” Doyle said.

Net income in the quarter ended Sept. 11 increased to $22.1 million, or 36 cents a share, from $16.6 million, or 27 cents a share, a year earlier, the company said in a statement. Excluding certain items, profit was 35 cents a share, beating the average of analysts’ estimate of 33 cents.

Revenue rose 8.3 percent to $376.3 million in the quarter, from $347.4 million a year earlier.

Pizza Hut, owned by Yum! Brands Inc., is the biggest U.S. pizza chain based on the total number of stores.

To contact the reporter on this story: Leslie Patton in Chicago at lpatton5@bloomberg.net

To contact the editor responsible for this story: Robin Ajello at rajello@bloomberg.net

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