Market Overview

Domino's Pizza Reports Early Q2 Sales Boost

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Domino's Pizza Reports Early Q2 Sales Boost

Domino’s Pizza, Inc. (NYSE: DPZ) announced it had seen a boost in sales in the United States between late March and mid-May as the pandemic forced residents to stay home.

What Happened

Preliminary same-store sales at Domino’s rose 14% in the second quarter on a year-on-year basis. In a statement, the Pizza giant’s CEO Ritch Allison said, “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."

Allison added there was no surety of how long this “tailwind may last.”

Why It Matters

At the peak of the COVID-19 epidemic, 2,400 Domino’s stores were closed internationally, according to the company.

Allison revealed that international sales at Domino’s continue to be “choppy” and may remain so for the “foreseeable future.”

Domino’s has $250 million cash at hand to “provide ongoing financial flexibility.” It borrowed $158 million under its outstanding variable notes during Q2 2020.

The second quarter results will be released on July 16, 2020.

Price Action

Domino’s Pizza shares traded 0.54% higher at $362.11 in the after-hours session on Tuesday. The shares had closed the regular session 3.21% lower at $360.16.

 

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