Food Business News - May 10, 2022 - 20

US same-store sales at Domino's
decline amid driver shortage
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ANN ARBOR, MICH. - Domino's Pizza, Inc. has a
delivery problem - not enough drivers.
" When we look across the US business,
we continue to believe that consumer
demand for Domino's remains very
strong across the country, " said Richard E.
Allison, chief executive officer, in an April
28 earnings call to discuss first-quarter
financial results. " It is our current capacity
to serve that strong demand, particularly
for delivery customers, that has continued
to be our greatest near-term challenge. "
US same-store sales declined 3.6% in
the quarter ended March 27. US carryout
same-store sales rose 11%, but US delivery
same-store sales dropped 11%.
" The decline in US same-store sales
RTE Flakes
in Q1 was driven by a decline in order
counts, which were pressured by the very
challenging staffing environment, which
had certain operational impacts, such as
shortened store hours and customer service
challenges in many stores, both company-owned
and franchised, " said Sandeep
Reddy, chief financial officer. " The decline
in order counts was partially offset by ticket
growth, resulting from higher menu prices
as well as more items per transaction and
increases to our average delivery fee. "
Domino's breaks down its US stores
Granola
into quintiles based on staffing levels
relative to a fully staffed store, Mr. Allison
said.
" When we look at the same quinGranola
Bars
888-810-3212
www.honeyville.com/mill-landing-page/
20
Food Business News
tiles relative to the delivery business, we
see the stark impact that staffing had
during the first quarter, " he said. " We
saw a 17-percentage-point gap in delivery
same-store sales between stores in the top
20% and those in the bottom 20%. It is
this disparity in delivery performance that
is driving the overall contrast in performance
across our US business. The gap between
our top performers and our bottom
performers has widened over the past
year, and we are keenly focused on lifting
up the underperforming stores. "
Domino's is not only raising wages
for delivery drivers but also promoting
how the position may lead to a management
role, Mr. Allison said. A television
commercial shows a woman who began as
a driver and now is an owner for Domino's.
" If you want to be a general manager
at Domino's and an owner at Domino's, it all
starts as being a driver, " Mr. Allison said.
International same-store sales,
excluding the impact of foreign currency,
rose 1.2% in the quarter.
" India once again led our international
markets in store growth and opened
(its) 1,500th store during the quarter, " Mr.
Allison said. " This was accompanied by
a continued same-store sales growth. We
also continue to see strong sales and store
growth from China. "
Companywide in the quarter Domino's
had net income of $91 million, or
$2.50 per share on the common stock,
which was down 23% from $118 million,
or $3 per share, in the previous year's first
quarter. Lower income from operations
of $22 million resulted from lower US
company-owned stores and supply chain
operating margins and higher general
and administrative expenses. Revenues
increased 2.8% to $1.01 billion from $984
million. Domino's stock price on the New
York Stock Exchange closed at $353.88 per
share on April 28, which was down 5% from
$372.91 per share at the close of April 27.
" We got off to a slow start in January
May 10, 2022
DOMINO'S PIZZA, INC.
http://www.honeyville.com/mill-landing-page/

Food Business News - May 10, 2022

Table of Contents for the Digital Edition of Food Business News - May 10, 2022

Food Business News - May 10, 2022 - Intro
Food Business News - May 10, 2022 - 1
Food Business News - May 10, 2022 - 2
Food Business News - May 10, 2022 - 3
Food Business News - May 10, 2022 - 4
Food Business News - May 10, 2022 - 5
Food Business News - May 10, 2022 - 6
Food Business News - May 10, 2022 - 7
Food Business News - May 10, 2022 - 8
Food Business News - May 10, 2022 - 9
Food Business News - May 10, 2022 - 10
Food Business News - May 10, 2022 - 11
Food Business News - May 10, 2022 - 12
Food Business News - May 10, 2022 - 13
Food Business News - May 10, 2022 - 14
Food Business News - May 10, 2022 - 15
Food Business News - May 10, 2022 - 16
Food Business News - May 10, 2022 - 17
Food Business News - May 10, 2022 - 18
Food Business News - May 10, 2022 - 19
Food Business News - May 10, 2022 - 20
Food Business News - May 10, 2022 - 21
Food Business News - May 10, 2022 - 22
Food Business News - May 10, 2022 - 23
Food Business News - May 10, 2022 - 24
Food Business News - May 10, 2022 - 25
Food Business News - May 10, 2022 - 26
Food Business News - May 10, 2022 - 27
Food Business News - May 10, 2022 - 28
Food Business News - May 10, 2022 - 29
Food Business News - May 10, 2022 - 30
Food Business News - May 10, 2022 - 31
Food Business News - May 10, 2022 - 32
Food Business News - May 10, 2022 - 33
Food Business News - May 10, 2022 - 34
Food Business News - May 10, 2022 - 35
Food Business News - May 10, 2022 - 36
Food Business News - May 10, 2022 - 37
Food Business News - May 10, 2022 - 38
Food Business News - May 10, 2022 - 39
Food Business News - May 10, 2022 - 40
Food Business News - May 10, 2022 - 41
Food Business News - May 10, 2022 - 42
Food Business News - May 10, 2022 - 43
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Food Business News - May 10, 2022 - 45
Food Business News - May 10, 2022 - 46
Food Business News - May 10, 2022 - 47
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Food Business News - May 10, 2022 - 50
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Food Business News - May 10, 2022 - 60
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Food Business News - May 10, 2022 - 71
Food Business News - May 10, 2022 - 72
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