Earnings

Domino’s Reports 14.8 Pct Global Retail Sales Growth

Domino’s Reports 14.8 Pct Global Retail Sales Growth

Domino’s Pizza, Inc. reported on Thursday (Oct. 8) global retail sales growth excluding foreign currency impact of 14.8 percent, with U.S. same-store sales growth of 17.5 percent and international same-store sales growth of 6.2 percent.

“During the third quarter, the pandemic continued to drive a favorable tailwind for food delivery, coupled with a challenging operating environment,” Domino's CEO Ritch Allison said on a call with analysts in terms of the company’s U.S. results.

Domino’s rolled out products such as new chicken wings with improved sauces on July 7. It also launched two specialty pizzas — its cheeseburger pizza and its chicken taco pizza — on Aug. 24.

“Customer feedback thus far has been very positive on these new products,” Allison said.

The company’s franchisees and corporate teams collectively opened 44 net new locations in the U.S., which consisted of 47 openings and three closures during the quarter.

“This is a terrific result when you consider what is happening across the category and more broadly across the U.S. restaurant industry,” Allison said.

In its international business, Allison noted that the company continues to observe wide differences in performance as the coronavirus keeps evolving throughout the globe.

The executive said the company had many markets that continued to create formidable retail and same-store sales growth such as China, Japan and Germany, among others.

“In these markets, our ability to remain open and operating throughout the pandemic has allowed us to benefit from the delivery tailwind [there],” Allison said.

The company’s international business added 39 net new stores during the quarter comprised of 162 store openings and 123 closures.

As for its overall results, Domino’s reported diluted earnings per share (EPS) of $2.49 on revenues of $967.7 million. The results fell short of analyst estimates for earnings per share of $2.78 but exceeded top-line analyst estimates of $952.97 million.

On Oct. 6, the firm’s board of directors declared a quarterly dividend of 78 cents per share for shareholders of record as of Dec. 15 for payment on Dec. 30.

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