Domino’s withdraws longterm guidance amid coronavirus uncertainty

Domino’s Pizza (DPZ) beat on both the top and bottom lines and withdrew its longterm guidance amid coronavirus uncertainty.

Here were the main numbers for Domino’s first quarter, compared to Bloomberg estimates:

• Revenue: $873.1 million vs. $869.36 million expected

• EPS: $3.07 vs. $2.32 expected

• U.S. same-store sales: +1.6% vs. +1.8% expected

The pizza chain withdrew its previous two-to-three year outlook.

“In a time of unprecedented change in our industry, I am pleased to report that Domino’s is in a very strong financial position, both at the brand and franchisee levels,” CEO Ritch Allison said in a statement. “We can’t predict the full impact of COVID-19 on the broader economy and we don’t know how consumer behavior and restaurant purchasing patterns may evolve coming out of this crisis.  What I do know is that our franchisees and teams in the U.S. and across the globe will remain focused on safely serving our customers and our communities in this time of need.  

Domino’s first-quarter results follow the company’s previous business update provided Mar. 30 in which the company outlined the impact it was seeing from the COVID-19 outbreak. At the time, Domino’s withdrew its prior fiscal 2020 guidance and said that U.S. same-store sales rose 1.6% during the first quarter.

“Beginning in February and ramping up into March, U.S. sales were impacted by many factors, which have varied in magnitude across the cities and towns we serve,” CEO Ritch Allison said in a statement at the time. “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.”

At the end of March, Domino’s also drew down $158 million from its revolving credit facility. Management said it expected to have about $300 million of cash on hand.

Domino’s Pizza has been one of the better-performing restaurant companies this year. The stock soared 30% so far in 2020 and have outperformed the S&P 500’s (^GSPC) nearly 13% decline during the same time period. Rivals Papa John’s (PZZA) shares are up 10% and Pizza Hut parent Yum Brands (YUM) fell 13% this year.

Domino’s earnings conference call with management kicks off at 10 a.m. ET.

This post is developing. Please check back for updates.

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Heidi Chung is a reporter at Yahoo Finance. Follow her on Twitter: @heidi_chung.

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