Domino's Pizza, Inc. (NYSE: DPZ) shares fell more than 5% Thursday morning, after the Company announced first quarter 2020 financial results. According to the report Domino’s global retail sales increased 4.4% in the first quarter, or 5.9% excluding foreign currency impact. In addition, U.S. same store sales grew 1.6% during the quarter versus the year-ago period, continuing the positive sales momentum in the Company's U.S. stores business. The international business also had positive results, although with a much more modest same store sales growth of 1.5% during the quarter.
The Company indicates that this first quarter marked the 105th consecutive quarter of international same store sales growth and the 36th consecutive quarter of U.S. same store sales growth.
As for new stores, the Company opened 178 gross new stores and 69 net new stores, comprised of 30 net new U.S. stores and 39 net new international stores. The Company's net store growth includes the closure of its South Africa market, unrelated to the COVID-19 pandemic, comprising 71 stores in total.
"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," said Ritch Allison, Domino's Chief Executive Officer. "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. I have great confidence in our people and our ability to manage through this crisis, and I remain optimistic about the long-term potential of the Domino's brand."