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Domino's Same-Store Sales Rise 16% On Pizza Demand During Pandemic

Published on Jul 17 2020 12:56 PM in Restaurant tagged: Domino's

Domino's Same-Store Sales Rise 16% On Pizza Demand During Pandemic

Domino's Pizza Inc has beaten Wall Street estimates for quarterly same-restaurant sales and profit, as diners ordered in more pies since dine-in options were limited due to lockdowns triggered by the COVID-19 pandemic.

The health crisis has nearly decimated the food industry as rising number of cases and stay-at-home orders have forced restaurants to shut dine-in options and layoff thousands of employees in an effort to reduce costs.

Domino's is one of the few restaurant chains that has seen a boost in sales as consumers sought the comfort of pizzas and relied on their fast delivery. Second quarter US same-store sales surged 16.1%, beating analysts' estimates of 10.67%.

The world's largest pizza company said that consumers' ordering behaviour during the pandemic led to the sharp rise in numbers.

Domino's also introduced a new contactless carside delivery option for carryout orders, which allows diners to choose where they would like their order placed – the passenger side, back seat or the trunk of their car.

Drive-through has been a major hit for other fast-food chains as well, such as McDonald's and Burger King.

Total Revenue, Net Income, Earnings Per Share And International Same-Store Sales

For Domino's, total revenue rose 13.4% to $920 million in the quarter ended June 14 from a year earlier, above the expectation of $911.5 million, according to IBES data from Refinitiv.

Net income rose 28.5% to $118.7 million. On a per share basis, the company earned $2.99, beating the estimate by 75 cents.

International same-store sales rose 1.3%, and beat estimates of 0.65%.

Separately, the company also said that its chief financial officer Jeffrey Lawrence is retiring after more than 20 years of service.

News by Reuters, edited by Hospitality Ireland. Click subscribe to sign up for the Hospitality Ireland print edition.

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