Domino’s Reports Hot U.S. Quarter While Overseas Markets Lag
Domino’s Pizza Inc. sidestepped the carnage that has crippled other restaurant chains during the coronavirus pandemic, posting rapid same-store sales growth that beat Wall Street’s high expectations.
The chain, whose delivery and take-out model helped shield it during lockdowns across the U.S., reported same-store sale gains in its home market of 16.1% in the second quarter ended June 14. That’s better than analysts had predicted and up sharply from the 2.1% growth logged in the same period last year.
Shares swung between gains and losses in pre-market trading. They were up 1.5% as of 7:44 a.m. They’d already climbed 41% year to date, even as the wider S&P 500 index is nearly flat year to date.
The pandemic has been a boon fortop pizza chains this spring as consumers avoided public spaces and instead opted for delivery and curbside pickup. That gave a boost to Domino’s, which was already outpacing rivals before the virus given its commitment to tech-enabled carry-out and delivery. In June, the pizza company leaned harder into its convenience model, rolling out both a pizza registry for postponed or scaled-back weddings and contactless carside pick-up at its stores.
66,273 in U.S.Most new cases today
-4% Change in MSCI World Index of global stocks since Wuhan lockdown, Jan. 23
-1.116 Change in U.S. treasury bond yield since Wuhan lockdown, Jan. 23
4.4% Global GDP Tracker (annualized), June