Operations

Domino's Q1 retail sales up 16.7%, but revenues miss estimates

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April 29, 2021

U.S. franchise same-store sales growth and international retail sales growth helped Domino's delivery a pretty healthy first-quarter financial report this morning, though there was evidence of slowing demand from the chain's revenue numbers that missed estimates.

Global retail sales for the world's biggest pizza chain increased 16.7% in the first quarter, or 14% excluding foreign currency impact, according to a report released today. Q1 total revenues grew 12.7% to $983.7 million from $873.1 million last year's quarter. However, analysts predicted revenues would ring in a approximately $984.7 million, which may indicate diners are moving out to offerings outside the economical pizza realm which has been a mainstay of the past pandemic-ridden year.

U.S. same-store sales grew 13.4% during the quarter versus the year-ago period, continuing the positive sales momentum in the company's U.S. stores business. The international business also posted strong results, with same store sales growth of 11.8% during the quarter. The first quarter marked the 109th consecutive quarter of international same-store sales growth and the fortieth consecutive quarter of U.S. same-store sales growth.

Other key Q1 highlights include:

• 175 net new Q1 global stores, including 36 net new U.S. store openings.
• 2.3% drop in Q1 diluted EPS over previous year's quarter to $3.
• 12.7% growth in Q1 revenues to $110.6 million.
• $3.8 million decrease in Q1 net Income, attributed to a significantly higher provision for income taxes."

"It was a strong first quarter for the Domino's brand, with balanced growth across all areas of our global business," Domino's CEO Ritch Allison said in the release. "I applaud our franchisees and operators all across the globe, who once again demonstrated why they are the best in the restaurant business."

Domino's is based in Ann Arbor, Michigan and has more than 17,800 stores in over 90 markets.