Domino’s Pizza posted its first drop in U.S. same-store sales in over a decade on Thursday, because the world’s greatest pizza chain grappled with a slowdown in supply demand and a tight labor market that created a scarcity of drivers.
As COVID-19 curbs ease, Americans have began to eat out at eating places after more than a yr of ordering meals at house, slowing sales at Domino’s that will get most of its enterprise from deliveries and take-away orders.
Adding to its woes, Domino’s additionally stated a extreme labor crunch in the United States dealt a blow to its enterprise, forcing it to cut back retailer working hours and compromise on supply service occasions.
To deal with the labor scarcity, Domino’s Chief Executive Officer Richard Allison stated the corporate would maximize the variety of deliveries a driver might make per shift.
“I don’t see why drivers should ever have to get out of their cars. Why can’t we keep them turning to the store back to the customer and maximizing deliveries per driver per hour,” Allison stated on a name with analysts.
The Michigan-based firm stated stimulus verify advantages rolling off additionally helped result in a 1.9% fall in same-store sales at its U.S. eating places through the third quarter.
That was off analysts’ estimate of a 1.89% improve, in line with IBES information from Refinitiv, and a reported soar of 17.5% a yr in the past.
Compared with 2019, nonetheless, the pizza chain’s U.S. same-store sales had been nonetheless up 15.6%.
Shares of the corporate rose 2% in afternoon buying and selling, because it additionally reported a rise of 8.8% in its worldwide same-store sales.
Domino’s web revenue rose 21.5% to $120.4 million or $3.24 per share, beating estimates of $3.11 per share and assuaging some considerations that rising wage bills had been pressuring the corporate’s revenue margins.