UPDATE 4-Domino's shares slide as revenue falls short

* Q3 revenue falls 6.5 percent, missing estimates

* U.S. same-store sales flat

* Q3 adj EPS 17 cents vs. Wall St view 15 cents

* Shares down 8 percent (Adds company conference call comment, updates stock activity; previous NEW YORK)

By Lisa Baertlein and Dhanya Skariachan

LOS ANGELES/NEW YORK, Oct 13 (Reuters) - Domino's Pizza Inc (DPZ.N) posted a steeper-than-expected decline in quarterly revenue, sending its shares down 8 percent on Tuesday.

Domino's and rivals like Yum Brands Inc's (YUM.N) Pizza Hut and Papa John's International Inc (PZZA.O) have been facing weak U.S. consumer demand as more people cook at home.

Shares in the company were down 75 cents at $8.62 in midday trading on the New York Stock Exchange. Nevertheless, the stock is still significantly higher than its 52-week low of $2.61 in November 2008.

Domino's said revenue fell 6.5 percent to $302.7 million in the third quarter that ended on Sept. 6. Analysts on average were expecting $308.9 million, according to Thomson Reuters I/B/E/S.

Profit came in better than expected due to cost controls and lower interest expense. Net income rose to $17.8 million, or 31 cents a share from $10.1 million, or 17 cents a share, a year earlier.

Lower interest expense boosted profit up by 3 cents a share, while foreign currency reduced per-share profit by 2 cents.

Excluding a $14.3 million pretax gain from retiring debt, earnings were 17 cents a share, 2 cents higher than the analysts' average estimate.

Telsey Advisory Group analyst Tom Forte tied the stock movement to the lackluster sales numbers, which missed his expectations.

But Forte said the company's efforts to take its menu beyond pizza were bearing fruit and drawing in customers. In particular, he said, the addition of sandwiches was helping lunch sales.

Same-restaurant sales, a key indicator of performance, were flat in the United States and up 2.7 percent internationally.

"We're holding our own on the domestic sales front," Chief Executive David Brandon said on a conference call. Domino's closed 30 stores during the quarter as part of its effort to weed out weak operators.

The Ann Arbor, Michigan-based chain now appears to be outperforming rival Pizza Hut in the United States. The Yum unit, which is seen as a more expensive option than Domino's, recently reported a 13 percent decline in U.S. sales at established restaurants for the third quarter.

Sales at established U.S. Domino's restaurants were down 2 percent at its 481 company-owned locations, but rose 0.3 percent at the 4,456 units operated by franchisees.

"This is a sign of a healthy Domino's," Forte said, adding the franchisee-operated outlets have outperformed the company-owned restaurants for about three quarters. The company attributed the results to the geographic location of units.

Going forward, Domino's expects to see less negative impact from foreign currency exchange. It also expects lower food costs and better traffic to produce better margins this year.

Shares in Pizza Hut parent Yum were basically flat at $35.25 and Papa John's shares were off 1.2 percent at $24.40. (Editing by Lisa Von Ahn, Leslie Geviertz) baertlein@thomsonreuters.com; +1 213 955 6742; Reuters Messaging: lisa.baertlein.reuters.com@reuters.net; ))