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.