Dive Brief:
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Domino's Pizza, the world's largest pizza company based on retail sales, reported a successful second quarter while many competing chains struggled to remain afloat. In its Thursday earnings report, the company said U.S. same-store sales jumped 16% on the quarter, which concluded June 14. A year earlier, it reported a 3% gain, the Wall Street Journal reported.
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In a separate Thursday release, the chain announced the retirement of CFO Jeffrey Lawrence. Lawrence, who has been with the company for 20 years and has served as CFO since 2015, will remain in the role until the company selects a successor, at which point he will serve as CEO Ritch Allison's advisor through 2020.
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"From [having] a lead role in our IPO, to partnering with our U.S. and International franchisees to get to #1, to helping shape our digital transformation over the past decade, I am truly thankful," Lawrence said.
Dive Insight:
Domino's netted $920 million in quarterly revenue, 13% more than last year, beating analysts' estimates, the Journal reported. The brand likely benefited from its early investment in online ordering and loyalty programs, as well as its ability to operate without third-party delivery services, which bog down many competitors.
Sales at overseas locations grew 1.3%, down from a 2.4% gain last year, which the company said it expected as a result of temporary store closures and financial challenges resulting from COVID-19. In the U.S., sales and earnings grew by about 13% and 36% from a year earlier, respectively.
As of last week, fewer than 600 stores overseas, less than 4%, were closed. In the U.S., Domino's faces growing competition as independent restaurants reopen and bolster their delivery operations.
Value brands like Domino's are likely to fare better in a high-unemployment environment than pricier restaurants, The Journal said, and are "far better protected against a resurgence in the virus than many competitors relying on dining rooms."
Additionally, the Journal said, "the possible return of major live sports, coupled with a ban on fans attending games, also could improve demand for delivery services, and pizza especially, in the year ahead."
