An employee places a pizza box onto a shelf at a Domino’s Pizza Inc. restaurant in Chantilly, Virginia.
Andrew Harrer | Bloomberg | Getty Images
Domino’s Pizza on Thursday said that its U.S. same-store sales grew 7.1% in the first four weeks of its second quarter.
However, the pizza chain withdrew its two- to three-year outlook, citing the uncertainty surrounding the economy and Domino’s operations due to the coronavirus pandemic. Domino’s previously forecast U.S. same-store sales growth in a range of 2% and 5% and global sales growth of 7% to 10%.
Shares of the company fell less than 1% in premarket trading.
Domino’s comments came as the company reported its fiscal first-quarter results.
Here’s what the company reported for the quarter ended March 22:
- Earnings per share: $3.07
- Revenue: $873.1 million
The pizza chain reported fiscal first-quarter net income of $121.6 million, or $3.07 per share, up from $92.6 million, or $2.20 per share, a year earlier.
Net sales rose 4.4% to $873.1 million. U.S. same-store sales rose 1.6%, and international same-store sales grew 1.5%.
Wall Street anticipated earnings per share of $2.32 on revenue of $868.7 million, based on a survey of analysts by Refinitiv. However, it’s difficult to compare reported earnings to analyst estimates for Domino’s quarter, as the coronavirus pandemic continues to hit global economies and makes earnings impact difficult to assess.
Domino’s announced preliminary results for its same-store sales growth and revenue growth on March 30.
Likewise, the company shared sales results for the first month of Domino’s second quarter. U.S. sales for the pizza chain jumped 10.7% from March 23 to April 19, compared to a year ago. Sales at locations open at least a year rose 7.1%.
As millions of restaurant workers lose their jobs, Domino’s is hiring 10,000 employees in the United States to meet demand for its pizza. The chain’s reputation for delivery has boosted sales as consumers stay home to slow the spread of the coronavirus.
The company’s international locations are faring worse. In the first three weeks of the second quarter, same-store sales declined 3.2%. While nearly all of Domino’s U.S. restaurants are open, about 1,750 of its international locations have closed, as of April 21.
Domino’s has $200.8 in cash and cash equivalents on hand, as of Wednesday. The company is still paying a 78-cent quarterly dividend to investors.