Despite the world being in economic turmoil, some companies have been able to grow revenue. Domino's Pizza (NYSE:DPZ), the largest pizza company in the world in terms of sales, has been continuing delivery services throughout the COVID-19 pandemic, and the company saw modest revenue growth for the first quarter of 2020.
Crunching the numbers
Global sales grew 5.9% in the first quarter in constant currency to $873 million and U.S. comps increased 1.5%. International sales growth was 1.7%. Diluted earnings per share rose 39.5% to $3.07.
Domino's doesn't give a quarterly or annual outlook, but it previously gave two-to-three year guidance of global sales growth of 7% to 10%, U.S. comps of 2% to 5%, and international sales growth of 1% to 4%. It withdrew this outlook due to continued market uncertainty.
The company's cash position is healthy, with $200 million in cash and cash equivalents as it continues to make strong sales.
Domino's opened 69 net new stores globally during the first quarter, including 30 in the U.S. CEO Ritch Allison said, "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."
The company also gave an update to the current quarter, which showed a 7.1% increase in U.S. comps in the first four weeks. The international business was not doing as well, with a 3.2% decline in comps and an 18.9% decline in retail sales. While U.S. stores have remained open, many global stores are closed.