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Domino's serves up rising sales as tech investments pay off

A man walks in front of a Domino's pizza restaurant in Hoboken, New Jersey July 8, 2015. REUTERS/Eduardo Munoz

(Reuters) - Domino's Pizza Inc (DPZ.N) reported a better-than-expected rise in quarterly same-store sales, helped by improved online and mobile ordering systems.

The company has been outperforming rivals such as Yum Brands Inc's (YUM.N) Pizza Hut and McDonald's Corp (MCD.N) in the United States due to the digital investments, which make it easier for customers to order pizzas using methods such as smart watches and digital wallets.

About half of the company's U.S. sales came through digital channels last year.

The second-largest U.S. pizza chain by store count also said on Thursday Chief Financial Officer Michael Lawton will retire at the end of August.

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Lawton, who has been the CFO since August 2010, will be replaced by Treasurer Jeffrey Lawrence.

Domino's said U.S. same-store sales rose 12.8 percent in the quarter ended June 14, higher than the 11.1 percent rise estimated by analysts polled by research firm Consensus Metrix.

Pizza Hut reported a disappointing 1 percent rise in same-store sales in the United States on Tuesday.

International same-store sales rose 6.7 percent, excluding the impact of changes in exchange rates. Analysts expected international sales to rise 6 percent.

Net income rose to $45.9 million, or 81 cents per share, from $38.5 million, or 67 cents per share, a year earlier.

Domino's revenue rose 8.5 percent to $488.6 million.

Analysts on average expected a profit of 79 cents per share, and revenue of $489.1 million, according to Thomson Reuters I/B/E/S.

A drop in prices of commodities such as cheese and butter is also helping Domino's, BTIG analysts wrote in a note on Wednesday, initiating coverage with a "buy" rating.

Domino's shares were little changed at $118.48 in early trading on the New York Stock Exchange. Up to Wednesday's close, they had risen nearly 26 percent this year.

(Reporting By Yashaswini Swamynathan and Sruthi Ramakrishnan in Bengaluru; Editing by Sriraj Kalluvila)