Domino's Pizza sees U.S. sales 'tailwind' from takeout, delivery during coronavirus

Domino's Pizza Inc. said late Tuesday it saw a jump in U.S. sales between late March and mid-May as shutdown orders kept most U.S. residents at home in an effort to curb the spread of the coronavirus. Preliminary sales results from the first eight weeks of the second quarter showed a 14% increase in U.S. same-store sales, the company said in a business update. U.S. sales "accelerated materially" in the latter part of those eight weeks, Domino's said. "We are seeing a tailwind as consumer behavior across the restaurant industry has shifted toward delivery and carryout, though we are not sure whether this trend will continue for the remainder of the second quarter or how long this tailwind may last," the company said. International sales, however, "continue to be choppy," matching or exceeding U.S. sales in some areas and "down materially" in others, depending on local restrictions and store closures, Domino's said. Domino's said that at a peak, about 2,400 stores were temporarily closed. "We expect that temporary closures, partial-week openings, abbreviated store hours and limited service methods will continue to pressure international same-store and retail sales in the near-term," the company said. Domino's said it has nearly $250 million of cash on hand "to provide ongoing financial flexibility" during the pandemic. The company is slated to report second-quarter earnings on July 16. Shares of Domino's rose 1.3% in the extended session Tuesday after ending the regular trading day down 3.2%.

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