Employees garnish pizza inside a Domino’s Pizza location.
Jason Alden | Bloomberg | Getty Images
Domino’s Pizza on Thursday reported that its U.S. same-store gross sales climbed 3.5% in its newest quarter, regardless of powerful comparisons to its skyrocketing gross sales throughout lockdowns final yr.
Shares of the corporate rose greater than 11% in morning buying and selling.
Here’s what the corporate reported in contrast with what Wall Street was anticipating, based mostly on a survey of analysts by Refinitiv:
- Earnings per share: $3.12 adjusted vs. $2.87 anticipated
- Revenue: $1.03 billion vs. $972.3 million anticipated
The pizza chain reported fiscal second-quarter web revenue of $116.6 million, or $3.06 per share, down from $118.7 million, or $2.99 per share, a yr earlier.
Excluding recapitalization bills, Domino’s earned $3.12 per share, beating the $2.87 per share anticipated by analysts surveyed by Refinitiv.
Net gross sales rose 12.2% to $1.03 billion, beating expectations of $972.3 million.
In the U.S., Domino’s reported optimistic same-store gross sales development. On a two-year foundation, U.S. same-store gross sales rose 19.6% within the quarter. Executives stated that clients had been spending more cash on their orders, fueled by purchases with extra meals objects, a “modest” menu worth hike and a better supply payment. The phase’s robust efficiency this quarter is an indication that the corporate might be able to keep away from a gross sales droop stemming from pizza fatigue.
“You’ve often asked if our sales growth might be weaker in markets that have more fully reopened, but to the contrary, the opposite trend emerged through the second quarter, where we saw higher levels of sales growth in the second quarter in the markets with fewer Covid-related restrictions,” CEO Ritch Allison advised analysts.
He additionally stated that Domino’s, together with different massive pizza chains, is taking market share from impartial pizzerias.
One problem for Domino’s this quarter was labor. Allison stated that the margins for corporate-owned areas had been greater this quarter than the corporate wished due to the wrestle to search out prepared employees. The firm is planning to implement greater wages throughout some corporate-owned markets and for sure positions within the second half of the yr.
Allison stated that staffing is a significant hurdle to opening extra new eating places. Additionally, Domino’s continues to be seeing development and allowing delays tied to the pandemic, as effectively tools shortages due to provide chain interruptions. Worldwide, the corporate added 238 web new areas throughout the quarter, together with 35 in its residence market.
Outside of the U.S., Domino’s same-store gross sales jumped 13.9% in contrast with a yr in the past and 15.2% in contrast with two years in the past. Last yr, Domino’s worldwide enterprise was harm by short-term restaurant closures in markets with stricter lockdowns than the U.S.
Additionally, Domino’s introduced that it accomplished a $1.85 billion recapitalization transaction, which was beforehand introduced. The firm additionally made a $1 billion accelerated share repurchase settlement with an unnamed get together, permitting the corporate to obtain and retire greater than 2.25 million shares.