Domino’s Results Were Mixed. Free Pizzas, Uber May Help.

Total revenue, however, fell 3.9% from a year earlier to $1.03 billion as sales declined at U.S. company-owned stores. Analysts had expected $1.05 billion in revenue. The volume of orders fell from a year earlier and U.S. same-store sales declined 0.6%, management said.

International same-store sales rose 3.3% from a year ago, excluding the impact of currency fluctuations.

Domino’s second-quarter results showed a similar split between the U.S. and overseas businesses. U.S. same-store sales rose 0.1%, while international same-store sales, excluding the effect of exchange rates, were up 3.6%.

“We continue to execute on our initiatives to drive sustainable growth in the U.S.,” said CEO Russell Weiner. Those moves include a global partnership with Uber Eats,
Uber
‘s (
UBER
) food-delivery service, whiich rolls out at the end of this year. A promotion launched this week that offers a free pizza on a $7.99 order made through the Domino’s app could help as well.

The initiatives are intended to bring awareness to the Domino’s reward loyalty program, increase deliveries to new customers, and boost market share, management said on a call held to discuss the results.

Another goal is to create stronger economics for the company and franchisees, management said.

The loyalty program, though, could affect gross margins. While the average price increase in the U.S. was 3.2% in the third quarter, prices will rise slightly less than 1% in the current quarter. Lower prices can hurt margins.

The stock was down 0.3% to $353.12 at midday, giving up an earlier gain.

Write to Karishma Vanjani at [email protected].