October 14, 2021
Deborah Mary Sophia
(Reuters)-Domino’s Pizza saw its first decline in U.S. same-store sales over more than a decade on Thursday as the world’s largest pizza chain tackled slowing delivery demand and tight labor markets, causing a driver shortage. I recorded it.
As COVID-19 restraints eased, Americans started eating out at restaurants after ordering food at home for over a year, delaying the sale of dominoes, which make up the majority of the business, from delivery and takeaway orders. I am.
Domino’s Pizza also said that in addition to that problem, a serious labor shortage in the United States had hit the business, forcing it to shorten store opening hours and compromise delivery service hours.
To address the labor shortage, Domino CEO Richard Allison said he would maximize the number of deliveries drivers could make per shift.
“I don’t know why drivers have to get out of the car. Why can’t we go back to the store and return to our customers to maximize deliveries per driver per hour?” Allison said on the phone with the analyst.
The Michigan-based company said the roll-off of the benefits of stimulus checks reduced sales at the same store in US restaurants by 1.9% in the third quarter.
According to Refinitiv’s IBES data, this is an estimated 1.89% increase for analysts, with a 17.5% surge reported a year ago.
However, compared to 2019, pizza chain same-store sales in the United States are still up 15.6%.
The company’s stock rose 2% in the afternoon trading. This is because we reported that international same-store sales also increased by 8.8%.
Domino’s net income increased 21.5% to $ 120.4 million, or $ 3.24 per share, surpassing its estimate per share by $ 3.11 and alleviating concerns that rising wages are squeezing the company’s margins. Did.
(Report by Deborah Sophia in Bangalore, edited by Uttaresh.V)
Domino’s Pizza rarely loses US sales due to slowing demand and tight labor force
Source link Domino’s Pizza rarely loses US sales due to slowing demand and tight labor force