Move over, chicken soup: Pizza might just be the country's favorite comfort food today. Domino's Pizza (NYSE:DPZ) on Thursday announced a few head-turning numbers for sales growth in the fiscal second quarter, which captured the most intense impacts yet on consumer shopping behavior during the COVID-19 pandemic.
Sales growth in the core U.S. market shot up 16% versus 2% in the prior quarter. The chain benefited from the fact that many of its sit-down and casual-dining rivals closed during the period or dramatically scaled back operations as people stayed at home. Domino's capitalized on its speedy, value-focused delivery model to satisfy more than its fair share of that extra demand.
The growth helped spur a 37% profit spike, but the fast-food chain isn't resting on its prior market-share wins as rivals like Shake Shack and Chipotle Mexican Grill scale up their own takeout and home delivery offerings.
The pizza giant recently added a contactless car-side delivery platform to its carryout options and continues to add stores even in the mature U.S. geography. The denser footprint should allow it to deliver food more quickly while making it harder for competitors to establish themselves.