Domino’s posts a 7.1% increase in U.S same-store sales in the first month of Q2

Domino’s Pizza (NYSE: DPZ) released its preliminary results for the second quarter on Thursday. In the first 4 weeks of Q2, the American multinational pizza restaurant chain recorded a 7.1% increase in its comparable-store sales in the United States.

Despite upbeat results, Domino’s cited the rising uncertainty ascribed to the Coronavirus pandemic and its subsequent impact on its business as the pizza chain withdrew its guidance for 2 to 3 years. Originally, Domino’s had forecast a 2% to 5% increase in its same-store sales in the U.S and a broader 7% to 10% growth in sales globally.

Domino’s was reported 1.7% down in premarket trading on Thursday.

Domino’s Q1 Financial Results Versus Analysts’ Estimates

The pizza chain highlighted its preliminary figures for Q2 as it reported its first-quarter performance on Thursday.

According to Refinitiv, experts had forecast the company to print £704 million in revenue in the quarter that ended on 22^nd March. In terms of earnings per share (EPS), their estimate was capped at £1.88. In its Q1 financial report on Thursday, however, Domino’s boasted a higher revenue of £707 million in the recent quarter and said that it made £2.49 of earnings per share in the first quarter.

At £98.51 million, Domino’s net income in Q1 came in stronger than £75 billion that it reported in the same quarter last year. On the sales front, the pizza chain recorded a 4.4% increase in net sales in the first quarter. Its same-store sales were up 1.6% in the U.S and 1.5% internationally.

In the first month of Q2 from 23^rd March to 19^th April, Domino’s posted a 10.7% increase (year over year) in its U.S sales.

Domino’s Announces Lee Min Ho As Endorsement Model In Korea

In separate news, the pizza restaurant chain recently announced Lee Min Ho as its new endorsement model in Korea. Prominent credentials to the actor’s name include his role in the 2020 South Korean television series, The King: Eternal Monarch.

At £318 per share, Domino’s is currently more than 30% up year to date in the stock market. In mid-March, the stock had dropped around 3% below its opening level in January 2020. Its performance in 2019 was also reported fairly upbeat with an annual gain of roughly 20%.

At the time of writing, Domino’s Pizza is valued at £12.14 billion and has a price to earnings ratio of 40.15.