With delivery surging, Domino’s aims to improve carryout

With delivery surging, Domino’s aims to improve carryout

ANN ARBOR, MICH. — While Domino’s delivery business continued to generate strong sales in the first quarter, the pizza chain sees opportunities to improve its carryout business.

Net income at Domino’s Pizza, Inc. in the first quarter ended March 28 totaled $117.8 million, equal to $3 per share on the common stock, down 3% from $121.6 million, or $3.07 per share, in the same period a year ago. Net sales increased 11% to $983.7 million from $873.1 million.

The company reported its 40th consecutive quarter of positive same-store sales growth in the United States, with same-store sales growing 13%, driven by a higher delivery mix and an increase in items per order. Carryout order count remained pressured both in states that have largely reopened and in states that remain more restricted.

“When we broke it down and looked state-by-state at different paces of reopening across the country, there really were no discernible differences,” said Richard Allison, president and chief executive officer of Domino’s, during an April 29 conference call with analysts.

Domino’s has been less aggressive in marketing its carryout segment during the pandemic but sees opportunities to increase those efforts going forward. Driving awareness around its new carside delivery service program will be a key weapon to growing the segment, Mr. Allison said.

“This has created a new option to serve our customers effectively during COVID … not only to enhance the loyalty of our current carryout customers but also to reach a new, different and largely untapped drive-thru oriented customer,” he said.