Thursday's Market Minute: Pizza Party

Thursday's Market Minute: Pizza Party

Although earnings season hasn’t kicked off yet, Domino’s Pizza, Inc. DPZ reported third-quarter earnings before the bell this morning. EPS of $2.49 missed the Zacks estimate of $2.73, but revenue of $967.72 million beat the estimate of $944.53 million. It also reported U.S. same-store sales up 17.5%, and international same-store sales up 6.2%. These numbers show strong demand while stay-at-home orders continue.

Domino’s had an early advantage when the U.S. began to stay at home; while many other restaurants had to rely on third-party delivery apps instead of in-person dining, Domino’s had already built out their own delivery network. Their website also features a robust coupon section and a loyalty program.

While Domino’s is missing some discoverability on apps like GrubHub Inc GRUB, it’s also avoiding the fees associated, unlike restaurants such as McDonald’s Corp MCD. Next quarter’s growth will also be interesting to watch as the weather grows colder.

Photo by Kelvin Theseira on Unsplash

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