Dominos Experiences Fall in Sales Amid Labor Shortage

Dominos Experiences Fall in Sales Amid Labor Shortage

Domino’s Pizza (NYSE: DPZ) experienced a fall in third-quarter sales after 41 consecutive quarters of U.S. same-store sale increments. The company’s U.S. same-store sales tumbled 1.9% in comparison to the previous year. The hit comes amid the ongoing labor shortage within industries such as retail, restaurants, and hospitality.

“Yes, staffing has been a challenge most certainly during the quarter as we highlighted,” Domino’s Pizza CEO Ritch Allison told analysts on a conference call. “What I can tell you is that when you look at the third quarter relative to the first half of the year, we certainly saw more of an impact in the system around some things like reduced operating hours and some challenges with respect to delivery service times in particular. And when we look at it in our own corporate store business, we certainly saw our staffing levels relative to ideal were lower than we saw during the first half of the year.”

According to Allison, Dominos is working to correct the staffing shortage but did not disclose when they thought the problem would be remedied.

Allison continued on to say “Since the onset of the pandemic, our counts had also benefited from significant economic stimulus activity in the U.S., the effects of which largely tapered off in the third quarter, which we believe pressured our order counts as compared to Q3 2020.”

Analysts are expected to reassess the stock’s sales and earnings forecasts for the remainder of 2021 and 2022 amid the ongoing issues.

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