In light of the ongoing coronavirus pandemic, Domino’s is withdrawing its financial guidance for 2020 and has released preliminary sales results for the first quarter, ended March 22, 2020. The company is reporting slowed same-store sales growth of 1.6% for U.S. stores and 1.5% for international stores, although the company is not experiencing significant downturns yet as a result of the coronavirus pandemic. Global retail sales growth increased 4.4% systemwide, with 4.9% growth for U.S. stores and 3.9% for international stores.
“Across the globe, Domino's will remain focused on execution, service and value as we continue to navigate through the headwinds created by COVID-19,” CEO Ritch Allison said in a statement. “We are carefully managing our balance sheet, cash flow and all areas of the business to ensure we are doing what we believe will help us best manage through the near-term and, as always, position ourselves for long-term success.”
As of the end of March, “all but a few” of Domino’s stores in the U.S. remain open for business during the COVID-19 crisis, with international markets varying in operationality. The first quarter saw 109 store closures (with 104 of those being in overseas markets), with net store openings total of 69 units systemwide for the first quarter.
Allison said that the first quarter’s slower paced growth was impacted significantly by the “headwinds” that the pandemic has created for the industry.
“Shelter in place directives, pantry loading, university and school closures, event cancellations, and the lack of live televised sports have all impacted our business in ways that we cannot yet fully quantify,” Allison said.
The CEO also added that Domino’s has introduced “enhanced paid sick leave” policies for employees and is providing “additional compensation” for their hourly employees still working during the crisis. This news comes on the heels of the announcement that Domino’s would be hiring 10,000 workers across the U.S. to fortify their team that is responding to the increased need for food delivery.
Domino’s is also donating pizzas to communities and workers in need across the U.S.
“Our solid, resilient business model and strong financial position will continue to serve us well in these challenging times,” Allison said. “I thank our franchisees across the globe for their continued fight and passion in supporting their store team members and customers during this difficult period.”
Domino’s is expected to report its first quarter results on April 23, 2020.
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