Domino’s Pizza (DPZ) Second Quarter 2021 Revenue

Employees decorate pizza at Domino’s Pizza.

Jason Alden | Bloomberg | Getty Images

Domino’s pizza On Thursday, US same-store sales reported a 3.5% increase in the last quarter, despite a tight comparison with the surge in sales during the blockade last year.

The company’s stock rose more than 11% in the morning trading.

Based on an analyst survey by Refinitiv, the company reported:

  • Earnings per share: Adjusted $ 3.12 vs. Expected $ 2.87
  • Revenue: Forecast of $ 1.03 billion vs. $ 972.3 million

Pizza chain net income for the second quarter fell from $ 118.7 million ($ 2.99 per share) in the year-ago quarter to $ 116.6 million ($ 3.06 per share).

Excluding recapitalization costs, Domino earned $ 3.12 per share, above the $ 2.87 per share predicted by analysts surveyed by Refinitiv.

Net sales It increased 12.2% to $ 1.03 billion, exceeding the forecast of $ 972.3 million.

In the United States, Domino reported positive growth in same-store sales. Over the past two years, same-store sales in the United States increased by 19.6%. Executives said customers are spending more money on orders due to more food purchases, “modest” menu price increases, and higher shipping charges. The strong performance of the segment this quarter shows that the company may be able to avoid the slump in sales due to pizza fatigue.

“It’s often asked that sales growth may be weak in a fully reopened market, but on the contrary, the opposite trend was seen in the second quarter, with sales growth at a higher level in the second quarter. There are few restrictions related to Covid. “

He also said Domino, along with other large pizzeria chains, is gaining market share from independent pizzerias.

One of Domino’s challenges this quarter was the workforce. Alison said the company had a higher margin of company-owned locations this quarter than the company wanted, as it struggled to find voluntary workers. The company plans to offer higher wages across some corporate-owned markets and in certain positions in the second half of this year.

Alison said staffing is a major hurdle to opening more new restaurants. In addition, Domino’s is still seeing pandemic-related construction and permit delays, as well as equipment shortages due to supply chain disruptions. Worldwide, the company added 238 net new locations during the quarter, 35 of which were in the domestic market.

Outside the United States, Domino same-store sales increased 13.9% year-on-year and 15.2% year-on-year. Last year, Domino’s international operations were hit by a temporary restaurant closure in a market that is more tightly closed than the United States.

In addition, Domino’s announced that it has completed a previously announced $ 1.85 billion recapitalization transaction. The company also entered into a $ 1 billion accelerated repo transaction with an unnamed party and was able to receive and cancel more than 2.25 million shares.

Domino’s Pizza (DPZ) Second Quarter 2021 Revenue

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