February 25, 2014 / 12:40 PM / in 4 years

CORRECTED-Domino's revenue rises 5 pct as new items draw customers

(Corrects to remove reference to “chicken tacos” in paragraph 2)

Feb 25 (Reuters) - Domino’s Pizza Inc, the second-largest U.S. pizza chain, reported a 5 percent rise in quarterly revenue as new menu items helped boost sales around the world.

Sales in the United States, Domino’s biggest market, rose 4.8 percent as new products such as handmade pan pizzas drew customers.

The company franchises most of its restaurants, reducing risk and ensuring a steady stream of royalties.

Domino’s U.S. same-restaurant sales rose 3.7 percent in the fourth quarter ended Dec. 29.

The company, whose rivals include Yum Brands Inc’s Pizza Hut, Little Caesars Pizza and Papa John’s International Inc, said international comparable sales rose 7 percent.

Domino’s revenue of $566.5 million beat the average analyst estimate of $563.39 million, according to Thomson Reuters I/B/E/S.

Net income rose about 19 percent to $44.7 million, or 78 cents per share, in the quarter from $37.6 million, or 64 cents per share, a year earlier.

Analysts had expected a profit of 76 cents per share.

Domino’s shares closed at $74.69 on Monday on the New York Stock Exchange. The Ann Arbor, Michigan-based company’s stock has risen more than 74 percent in the past year.

Domino’s stock is trading at 25.76 times forward earnings, while Yum shares are trading at 19.67 times, Papa John’s at 27.03 times and McDonald’s Corp’s at 16.40 times, according to Thomson Reuters data. (Reporting by Aditi Shrivastava in Bangalore; Editing by Kirti Pandey)

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