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Thursday's Market Minute: Pizza Party

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Thursday's Market Minute: Pizza Party

Although earnings season hasn’t kicked off yet, Domino’s Pizza, Inc. (NYSE: 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 (NYSE: GRUB), it’s also avoiding the fees associated, unlike restaurants such as McDonald’s Corp (NYSE: 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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