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Domino's previews strong fiscal Q2, withdraws long term outlook

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April 23, 2020

Domino's strong results with an early look at its fiscal second quarter, with U.S. same-store sales up 7.1% for the first four weeks ended April 19, compared with year-ago figures. Sales rose 10.7%, reflecting a surge in orders at the height of the COVID-19 outbreak .

The pizza chain previewed second-quarter sales results as part of the fiscal first-quarter earnings  results filed today with the U.S. Securities and Exchange Commission. For that period, which ended March 22, Domino's reported that revenue rose 4.4% to $873.1 million, with an EPS of $3.07 per share, a  39.5% gain over the prior year period.

"In a time of unprecedented change in our industry, I am pleased to report that Domino's is in a very strong financial position, both at the brand and franchisee levels," said CEO Ritch Allison, in the filing. "We can't predict the full impact of COVID-19 on the broader economy and we don't know how consumer behavior and restaurant purchasing patterns may evolve coming out of this crisis. What I do know is that our franchisees and teams in the U.S. and across the globe will remain focused on safely serving our customers and our communities in this time of need. I have great confidence in our people and our ability to manage through this crisis, and I remain optimistic about the long-term potential of the Domino's brand."

Nonetheless, the company said that due to the uncertainty about the global economy and the  "business operations considering COVID-19," it has withdrawn its long-term two-to three-year outlook for global retail sales, as well as U.S. same store sales growth, international same store sales growth and global net unit growth.

Domino's preliminary estimates of retail sales growth and same-store sales growth for the first three weeks of the second quarter of 2020, peg international same-store sales growth at 3.2% over the prior year period, excluding the impact of foreign currency.

The company said that as of April 21, nearly all its U.S. stores remain open, with dining rooms closed and stores deploying contactless delivery and carryout solutions. Based on information reported to the Company by its master franchisees, Domino's said that as of April 21, approximately 1,750 international stores were temporarily closed.