Domino’s (NYSE:DPZ) has fared better than most fast-food businesses through the start of the COVID-19 pandemic. The pizza delivery giant just announced that sales increased in the fiscal first quarter, which includes a few weeks of social distancing across North America and Europe.
Since the start of April, meanwhile, growth has shot higher in the U.S. market, where consumers are still spending more time at home. But Domino’s is also seeing intense pressure on its international segment, which is burdened by the temporary closure of nearly 2,000 locations.
Let’s look at the latest operating trends.
Volatile sales trends
As expected, sales were up modestly for the full period. Comparable-store sales rose 1.6% in the U.S. market and 1.5% in the international segment. The addition of 69 net new locations added to those gains to push global retail sales up 5.9% after excluding currency moves. That marked the company’s 36th straight quarter of growth at home and its 105th consecutive uptick internationally.
The consumer landscape changed rapidly in the closing days of the quarter and into the start of the fiscal second quarter, though. In an interim update, Domino’s said sales growth has shot higher by 7% in the U.S. market as gains in home delivery far offset the loss of on-premises sales at places like concerts and sporting events.
The international segment is looking weaker due to the temporary closure of 1,750 stores. That pressure, combined with