Domino's Reports Positive Global Sales During Covid-19 Crisis

While restaurants across the globe have seen impact on sales due to Novel corona virus, Domino’s has managed to remain at the top.

The pizza chain reported that same-store sales at domestic stores (6,126 units) grew 1.6 percent in Q1 in the US.  A majority of U.S. stores and all supply chain centers are open. CEO Ritch Allison said domestic sales were similar to Q4 in January, but the numbers began to take a hit in February and March.

The brand is completely closed in 14 international markets and partially closed in 23 more. In total, 1,400 units have temporarily shuttered internationally. Most of those are in France, Spain, New Zealand, and Panama. International same-store sales (10,933) grew 1.5 percent in Q1. Comps dipped 0.2 percent in the period from February 24 to March 22. As of March 22, 143 stores opened internationally in Q1 and 104 shut down, for a net of 39.

“As we manage through this challenge across the globe, I am proud to say that we are prioritizing the health and well-being of our team members, franchisees, and the communities we serve. We take our responsibility seriously for continuing to provide convenient and reliable delivery and carryout experiences to the communities where those services have been deemed essential during this extraordinary time,” shared Ritch Allison, CEO, Domino’s.

Given the market uncertainty arising from COVID-19, subsequent to the end of the first quarter, the Company took a precautionary measure and borrowed the remaining availability of $158 million under its outstanding variable funding notes to improve its already strong cash position. These borrowings, along with the Company's estimated current unrestricted cash as of the end of the first quarter, provide the Company with more than $300 million in cash on hand to provide enhanced financial flexibility.