- Domino's Pizza earned $2.99 per share during its latest quarter.
- Consumers are ordering more pizza during the coronavirus pandemic, boosting its U.S. sales.
- The company also announced that Chief Financial Officer Jeff Lawrence will retire.
Domino's Pizza on Thursday reported that its quarterly U.S. same-store sales soared 16.1% as more consumers ordered pizza delivery and takeout during the coronavirus pandemic.
Shares were down 1.5% in morning trading amid a broader market sell off.
Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
- Earnings per share: $2.99 vs. $2.24 expected
- Revenue: $920 million vs. $911.5 million expected
The pizza chain reported fiscal second-quarter net income of $118.7 million, or $2.99 per share, up from $92.4 million, or $2.19 per share, a year earlier. Analysts surveyed by Refinitiv expected $2.24 per share.
Domino's spent about $11 million on expenses related to the pandemic, including sick pay for employees and personal protective equipment. It took a $7 million hit from lower royalty revenues related to partial store closures but saved about $1 million on travel expenses.
During the quarter ended June 14, net sales rose 13.4% to $920 million, topping expectations of $911.5 million. Executives said that U.S. sales remained elevated through the end of the quarter even as many states reopened dining rooms.
"We continue to believe we are well-positioned to grow our global market share both during and after this pandemic," CFO Jeff Lawrence told analysts.
U.S. same-store sales increased by 16.1%, while international same-store sales grew by just 1.3%, due to more store closures. Its international markets saw as many as 2,400 locations closed at its lowest point, but as of July 8, fewer than 600 of its restaurants were temporarily shuttered.
CEO Ritch Allison said that consumers were spending more on their pizza orders, often to have leftovers the next day. He also said that the company expects consumers to have higher expectations around safety and contactless experiences "for the foreseeable future."
Domino's opened 39 net new U.S. locations and 45 net new international restaurants.
The company also announced that Lawrence will retire as chief financial officer once Domino's finds his successor.
At a time when many companies have suspended their dividends, Domino's will pay out a 78 cent dividend for shareholders on Sept. 30. The company has $248 million in cash and cash equivalents on hand, as of June 14.