Domino's Beats Profit Estimate on Demand During Pandemic

Domino's reported stronger-than-expected earnings, helped particularly by U.S. pizza demand during the pandemic.
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Domino's Pizza  (DPZ) - Get Report reported second-quarter earnings that beat expectations, helped by heavy U.S. pizza consumption during the coronavirus pandemic.

Profit totaled $118.7 million, or $2.99 a share, up from $92.4 million, or $2.19, in the year-earlier period. Analysts surveyed by FactSet called for EPS of $2.24 a share in the latest quarter.

Domino’s Pizza posted revenue of $920 million in the second quarter, up from $811.6 million in the year-ago quarter. The FactSet analyst consensus was $914.6 million for the latest quarter.

U.S. same-store sales jumped 16.1% in the latest quarter, compared with analysts’ prediction of 11.9%. And international same-store sales climbed 1.3%, compared with analysts’ projection of a 0.7% gain.

The latest quarter marked the 106th consecutive quarter of international same-store sales growth and the 37th consecutive quarter of U.S. same-store sales growth.

“Global retail sales in the second quarter were positively impacted by U.S. same store sales, but were negatively impacted by temporary store closures in certain international markets,” Domino’s said in a statement.

“U.S. same store sales … were positively impacted by customer ordering behavior during the covid-19 pandemic, continuing the positive sales momentum in the company's U.S. stores business.”

Domino’s, Ann Arbor, Mich., also said Jeffrey Lawrence decided to retire as CFO after more than 20 years. He will continue as CFO until the company finds a successor. Then he will serve as an adviser to Domino's Chief Executive Ritch Allison until year-end.

Domino’s shares at last check traded at $410.86, down 0.7%. The stock has surged 41% year to date.