It’s also using a “fortressing” strategy, Hottovy said. The chain has rolled out unique features like “hotspots,” which let people order pizza to the beach and other outdoor locations, and has tested out self-driving delivery cars. Even more than other pizza chains, it invested in digital infrastructure. Over the years, Domino’s made a number of decisions that have set it up for success now, Hottovy said. “They to me have stood out among all the chains,” said Morningstar restaurant analyst R.J. That’s been particularly good for Domino’s. Pizza is the ultimate quarantine food: It travels well, can feed a whole family and holds up as leftovers. Scott Olson/Getty ImagesĮven though the company’s profit was lower than expected in the latest quarter, analysts are bullish on Domino’s long-term potential. The company expects those costs to remain for the duration of the pandemic.Ĭustomers flocked to Domino's in the third quarter. “The total impact from safety and cleaning equipment, enhanced sick pay and other compensation for our team members and support for our franchisees and our communities was $11 million,” CFO Stuart Levy said during an analyst call discussing results. That’s despite sales surging almost 18% in the quarter. The company reported a profit of $2.49 a share, falling short of the $2.79 that Wall Street had expected. The pizza chain’s stock dropped about 7% Thursday after it announced its earnings for the third quarter. And that’s meant Domino’s increased sales have muted profits that disappointed Wall Street. Ingredient costs have also fluctuated: The company said cheese prices have been swinging wildly during the pandemic, going from an all-time low at one point to an all-time high last quarter. People are flocking to America’s biggest pizza chains in the pandemic, and that should be great news for Domino’s.īut just as Covid-19 has people buying more pizza, it has led to higher costs for everything from cleaning supplies to worker pay.
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