Domino's U.S. sales surge on pizza demand during pandemic


July 16 (Reuters) - Domino's Pizza Inc DPZ.N on Thursday comfortably beat Wall Street estimates for quarterly same-restaurant sales, as diners ordered in more pies since dine-in options remain 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 to see a boost in sales as consumers sought the comfort of pizzas and relied on their fast delivery. Second quarter U.S. same-store sales surged 16.1%, beating analysts' estimates of 10.67%.

The largest pizza company said consumers' ordering behavior during the pandemic led to the sharp rise in numbers, helping it continue the positive sales momentum.

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

For other fast-food chains such as McDonald's MCD.N and Burger King QSR.TO, drive-thru has been a major hit as well.

Several other casual restaurants in the country are now pivoting to a delivery model to keep their business running amid uncertainties.

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 to $118.7 million, or $2.99 per share, from $92.4 million, or $2.19 per share.

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

(Reporting by Nivedita Balu in Bengaluru; Editing by Shinjini Ganguli)

((Nivedita.Balu@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6749 4822/ Twitter: @niveditabalu;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


More Related Articles

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.