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Domino's set to fatten wallets too

Updated: Sep 28, 2021

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 on Thursday 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 :

Disclaimer Equity Trustees Limited (“EQT”) (ABN 46 004 031 298), AFSL 240975, is the Responsible Entity for the Insync Global Quality Fund and the Insync Global Capital Aware Fund. EQT is a subsidiary of EQT Holdings Limited (ABN 22 607 797 615), a publicly listed company on the Australian Securities Exchange (ASX: EQT). This information has been prepared by Insync Funds Management Pty Ltd (ABN 29 125 092 677, AFSL 322891) (“Insync”), to provide you with general information only. In preparing this information, we did not take into account the investment objectives, financial situation or particular needs of any particular person. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this information. Neither Insync, EQT nor any of its related parties, their employees or directors, provide and warranty of accuracy or reliability in relation to such information or accepts any liability to any person who relies on it. Past performance should not be taken as an indicator of future performance. You should obtain a copy of the Product Disclosure Statement before making a decision about whether to invest in this product.

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