Thu, 16 Sep 2021

Domino's marks profits for 41st consecutive quarter

Robert Besser
26 Jul 2021, 11:41 GMT+10

ANN ARBOR, Michigan: Domino's Pizza Inc reported higher-than-anticipated Q2 earnings and profits on July 22, as the addition of menu items, such as chicken taco pizza and cheeseburgers, apparently whetted the appetites of homebound customers in the U.S. that drove orders.

An almost 12 percent climb was recorded in Domino's share prices, scaling an all-time peak of $526.29, as the company also approved a novel repurchase plan of $1 billion.

The corporation, among those companies benefitting the most from the COVID-19 lockdown, is determined to continue the positive 18-month trend by opening other outlets aimed at slashing delivery times, as well as offering zero-contact takeaway choices.

Moreover, Domino's increased the cost of items on its menu, in addition to hiking the delivery fee for counterbalancing increased expenditures, driven by steeper costs of raw materials, as well as pandemic-linked expenses.

Such attempts drove an increase of 3.5 percent in the company's comparable-store sales in the United States, continuing 41 successive quarters of increased sales. Analytical teams projected a decrease of 1.3 percent.

"You've often asked if our sales growth might be weaker in markets that had more fully reopened ... 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 Richard Allison stated during a post earnings conference call.

A 13.9 percent rise in the global comparable-store sales also outdid the 8.9 percent leap projected by analysts. This lift was attributed to new lockdown measures imposed in India and the UK, where the public was enthusiastic about placing orders online.

A 12.2 percent increase in total earnings was reported to reach $1.03 billion for Q2 ending June 20, surpassing the estimated $972.3 million, as indicated by Refinitiv's IBES data.

Domino's earned $3.12 per share on an adjusted basis, thereby surpassing the estimated $2.87.

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