An employee moves a pizza to an oven at a Domino’s Pizza Inc. restaurant in Chantilly, Virginia.
Andrew Harrer | Bloomberg | fake pictures
Domino’s Pizza reported Thursday that its quarterly sales at the same US store soared 16.1% as more consumers ordered pizza delivery and delivery during the coronavirus pandemic.
Shares fell 1.5% in morning trading amid a sell-off in the market.
Here’s what the company reported compared to what Wall Street expected, according to an analyst survey by Refinitiv:
- Earnings per share: $ 2.99 vs. $ 2.24 expected
- Revenue: $ 920 million vs. $ 911.5 million expected
The pizza chain reported a second-quarter net income of $ 118.7 million, or $ 2.99 per share, compared to $ 92.4 million, or $ 2.19 per share, a year earlier. Analysts surveyed by Refinitiv expected $ 2.24 per share.
Domino’s spent about $ 11 million on pandemic-related expenses, including employee sick pay and personal protective equipment. She received a $ 7 million hit from lower royalty income related to partial store closings, but saved about $ 1 million in travel expenses.
During the quarter ended June 14, net sales increased 13.4% to $ 920 million, exceeding expectations of $ 911.5 million. Executives said sales in the United States remained high until the end of the quarter, even when many states reopened dining rooms.
“We continue to believe that we are well positioned to increase our global market share both during and after this pandemic,” CFO Jeff Lawrence told analysts.
Sales in the same stores in the United States increased by 16.1%, while international sales in the same stores grew by only 1.3%, due to more store closings. Its international markets registered up to 2,400 locations closed at its lowest point, but as of July 8, fewer than 600 of its restaurants were temporarily closed.
CEO Ritch Allison said consumers were spending more on their pizza orders, often to have leftovers the next day. He also said the company expects consumers to have higher expectations for safety and contactless experiences “in the foreseeable future.”
Domino’s opened 39 new net locations in the United States and 45 new net international restaurants.
The company also announced that Lawrence will retire as chief financial officer once Domino’s finds his successor.
At a time when many companies have suspended their dividends, Domino’s will pay a dividend of 78 cents for shareholders on September 30. The company has $ 248 million in cash and cash equivalents on hand, as of June 14.
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