Domino’s U.S. same-store sales rose 14% in first two months of the quarter

Earnings

An employee carries an order for a customer at a Domino’s Pizza restaurant in Detroit.

Sean Proctor | Bloomberg | Getty Images

Domino’s Pizza said Tuesday that its U.S. same-store sales climbed 14% during the first two months of its second quarter.

As the broader fast-food industry has seen many of its customers return, Domino’s has also noticed a lift to its own sales. The pizza chain reported U.S. same-store sales growth of 20.9% from April 20 to May 17. During the previous four weeks, its domestic same-store sales rose just 7.1%.

“We are seeing a tailwind as consumer behavior across the restaurant industry has shifted toward delivery and carryout, though we are not sure whether this trend will continue for the remainder of the second quarter or how long this tailwind may last,” CEO Ritch Allison said in a statement.

Analysts predict that delivery-based pizza chains like Domino’s will fare better than other restaurant companies while the country grapples with the coronavirus pandemic.

Allison, citing store closures and operating limitations, said that some of its international markets are not faring as well as the U.S. As of May 24, less than 900 of its international locations are closed, down from its peak of 2,400 temporary closures.

“Our international sales results continue to be choppy — and may be for the foreseeable future,” he said.

International same-store sales rose just 1% during the first two months of the quarter.

Shares of the pizza chain rose 1% in extended trading. The stock, which has a market value of $14.3 billion, is up 24% so far in 2020. The company will share its full second-quarter results on July 16.

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