ANN ARBOR, MICH. — Domino’s Pizza Inc. is estimating US same store sales growth for the first quarter ended March 22 will be 1.6%. Data released by the company March 30 showed the impact of the coronavirus (COVID-19) on the company’s performance.
For the period between Dec. 30 and Jan. 26, Domino’s US same store sales growth was 3.6%. Between Jan. 27 and Feb. 23 it dipped to 0.3% and then between Feb. 24 and March 22 it ticked up to 1%. While the results are below Wall Street expectations, they show a business adapting to a rapidly changing marketplace.
Ritch Allison, chief executive officer of Domino’s Pizza Inc., said the same-store sales data is a “snapshot” of the past 12 weeks, but that the situation remains fluid.
“All but a handful of our US stores have remained open and are serving customers,” he said. “All US supply chain centers are also open and fully operational. January US sales were very similar to the fourth quarter of 2019.
“Beginning in February and ramping up into March, US sales were impacted by many factors, which have varied in magnitude across the cities and towns we serve. 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.”
Around the world, 1,400 Domino’s stores are either closed or partially closed, according to the company. France, Spain and New Zealand represent approximately 900 of the temporary store closings.
First-quarter international same-store sales growth, excluding foreign currency impact, was 1.5%. Between Dec. 30 and Jan. 26, it was 2.3%. Between Jan. 27 and Feb. 23, sales ticked up to 2.4%, but fell 0.2% between Feb. 24 and March 22.
Domino’s has borrowed the remaining availability of $158 million under its funding notes to improve its cash position. The borrowings, along with the company’s estimated current cash at the end of the first quarter, is more than $300 million, according to the company.
The company also withdrew its fiscal 2020 guidance, reflecting the uncertainty of the global economy.
“I remain highly confident in our strategy and optimistic about the opportunity and potential of our business,” Allison said. “Our solid, resilient business model and strong financial position will continue to serve us well in these challenging times.”