Domino's Exceeds Q2 Revenue Expectations
Domino’s Pizza Inc. (DPZ) reported Thursday that it exceeded its second-quarter earnings expectations amid high demand for pizza, new menu items and higher menu prices.
As of Thursday at 12:59 p.m. ET, shares of Domino's were trading at $534.53, up $64.16, or 13.64%.
Domino’s reported 3.5% same-store sales growth in the U.S. The Michigan-based company saw net sales rise 12.2% to $1.03 billion, beating expectations of $972.3 million.
“You’ve often asked if our sales growth might be weaker in markets that had more fully opened, 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,” said Chief Executive Officer Ritch Allison on a post-earnings call.
.@dominos _ beat its Q2 expectations with $1.03 billion in revenue, 6.7% higher than the estimate.
— Delta Investment Tracker (@get_delta) July 22, 2021
Analysts expected a drop in sales due to the __ reopening but the demand for #pizza didn't crumble.$DPZ skyrocketed to a new ATH at $526, with a 10% gain! _ pic.twitter.com/dmooia2Ejy
International sales exceeded expectations, as countries such as the U.K. and India have relied heavily on online ordering.
Domino’s has seen a boon from the pandemic as more consumers order delivered meals. It has also introduced contactless pickup and delivery and cut their delivery times.
The company has continued to strive to keep up the momentum, opening 238 new stores.
Allison said that Domino’s will be able to raise wages in certain markets and positions.
