Domino’s Pizza is expanding its store footprint in a turbulent 2020, as the pizza delivery giant rides a double-digit increase in sales amid the pandemic-driven surge in takeout.
Even as other chains like Starbucks are busy paring back their physical footprints, Domino’s added 39 net new stores in the United States this spring and another 45 new locations internationally, the company said Thursday (July 16) in its second-quarter earnings report.
Domino’s reported big gains in earnings and revenue for the quarter, rising to $2.99 per share on net income of $118.7 million, well over the $2.19 per share on net income of $92.4 million the company reported during the same period a year ago.
The company’s revenue also surged to $920 million, more than $108 million over the second quarter of 2019.
Overall, same-store sales in the U.S. rocketed more than 16 percent in the second quarter, with a 1.3 percent rise internationally, Domino’s said.
The pizza chain’s earnings and revenue also came in well above the expectations of analysts surveyed by FactSet, who had predicted earnings per share of $2.24 and revenue of $915 million.
The Ann Arbor, Michigan-based company’s strong growth amid the coronavirus crisis has been aided by its push into online and mobile ordering. Domino’s noted that 65 percent of its sales in the U.S. came through digital channels as of the end of 2019, with more than half of all global sales now being handled remotely.
In order to drive digital sales, Domino’s noted that it has developed ordering platforms for Google Home, Facebook Messenger, Apple Watch, Amazon Echo and Twitter, in addition to its own Domino's Hotspots.
Temporary closures due to coronavirus restrictions are also down from a peak of 2,400 earlier this spring, having fallen to 600 in markets outside the U.S., Domino’s reported. The company had more than 17,100 stores in 90 markets at the end of the second quarter.
"Our focus as a global brand and the commitment of our local operators remains steadfast on serving our customers and our communities with a convenient, affordable and safe food and service experience," said Richard Allison, Domino's CEO, in a press release.