Please ensure Javascript is enabled for purposes of website accessibility

Domino’s Pizza Reports Sales Increase Amid COVID-19 Pandemic

By John Ballard - Updated Mar 31, 2020 at 5:09PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The pizza chain is looking to hire 10,000 employees across the U.S.

Domino's Pizza (DPZ 1.79%) won't report its first-quarter earnings until April 23, but on Monday, the pizza chain had some goods for investors amid the concerns about the COVID-19 outbreak. 

Preliminary first-quarter sales were up 4.9% in the U.S., while international stores were up 6.8% (excluding currency changes). Most stores in the U.S. have remained open, as have the supply chain centers, CEO Ritch Allison reported in a statement on March 30. 

A Domino's delivery driver carrying a pizza.

Image source: Domino's Pizza.

Sales decelerated through March

Overall, the results look positive given the circumstances. But it hasn't been smooth sailing for Domino's during this difficult time. While January U.S. sales were similar to the fourth quarter, there was a noticeable deceleration in same-store sales growth starting in February and continuing through March. 

U.S. comp sales growth decelerated from 3.6% in January to 1% for the period from Feb. 24 through March 22. "U.S. sales were impacted by many factors, which have varied in magnitude across the cities and towns we serve," Allison said. He highlighted shelter-in-place orders, pantry loading, school closings, event cancellations, and the lack of live televised sports as negative factors impacting sales during this crisis.

International stores were hit the hardest, with comps decelerating from 2.3% in January to negative 0.2% in March. "China was our first market to be significantly impacted by COVID-19," Allison explained, adding, "We were pleased to see our sales there recover and accelerate in the last few weeks of the first quarter." 

While the novel coronavirus dinged sales growth in the first quarter, Domino's is looking to hire 10,000 employees in the U.S., which signals there is still opportunity for growth as more people order takeout. 

John Ballard has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Domino's Pizza, Inc. Stock Quote
Domino's Pizza, Inc.
$394.89 (1.79%) $6.96

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/08/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.