Domino's set to fatten wallets too
Insync Fund Managers
Covid 19, Asian tastebuds and smart tech is driving the 'Supreme' growth in the pizza delivery giant says Insync
Domino's Pizza CEO Ritch Allison told CNBC that the Covid economic reopening has actually provided a boost for the company, helping fuel same-store sales growth during the second quarter.
Allison said that "while the pizza chain certainly benefited from a pandemic-related rise in takeout and delivery orders last year, the company also had to weather a loss of sales at key times such as weekends. Now, as health restrictions ease, that part of its business is returning"
"Think about late-night business. Think about the weekend business when people are gathering to watch a game or have a family event or something like that. That went away last year. It's coming back this year" added Allison, who has served as Domino's CEO since July 2018.
"I'd also like to highlight a few international markets that drove terrific growth during the quarter. China passed the 400-store milestone during Q2 and once again Dash, our master franchise partner delivered outstanding retail sales growth for the brand. China is without question one of the most exciting businesses in the Domino's system with significant long-term runway for growth."
The comments came after Domino's stock hit an all-time high Thursday and finished up 14.55% Thursday, as Wall Street cheered the company's better-than-expected quarterly results released before the bell.
John Lobb, Senior Portfolio Manager for Insync Funds Management noted "It's not just the convenience and value for money that is driving the outstanding growth in Domino's internationally, but their heavy investment in class leading technology across their network that results in incredibly efficient ordering, production and delivery. Domino's are showing that internal food delivery can be profitable rather than relying on more expensive and less reliable external modes such as Uber Eats and Deliveroo"
Insync Funds Management has been an investor in Domino's US since September 2019 as part of the "Food Away from Home" theme, along with 15 other Global Megatrends reshaping our world and driving long runways of growth in the most innovative, profitable and well-run enterprises. These Megatrends have delivered an outstanding 11 year track record for the boutique global manager domiciled here in Australia.
See Insync's background on Domino's :
Funds operated by this manager:Insync Global Capital Aware Fund, Insync Global Quality Equity Fund