Besides concerns of Covid resurgence in the United States, food stocks including Domino’s are heavily bolstered by the second-quarter earnings results.
Most companies are reporting their second-quarter earnings during this period. Consequently, there has been increased volatility in usually quiet stocks. Most importantly, investors have shown concerns over Covid resurgence that could slow global economic growth.
Notably, food stocks including Domino’s Pizza Inc (NYSE: DPZ) experienced a spike of over 14% on Thursday to close the trading at $538.82. Additionally, Chipotle Mexican Grill Inc (NYSE: CMG) and Starbucks Corp (NASDAQ: SBUX) all rose by approximately 2% yesterday to close the day trading at $1,798, and $122.63 respectively.
However, major indexes including the Dow and the S&P 500 experienced a shaky market as investors refrained from Covid stock losers. While there are approximately 193.4 million reported cases of coronavirus globally, the United States has so far recorded slightly above 35 million according to info provided by worldometers.info.
According to the latest update by the US Centers for Disease Control and Prevention, the country has so far administered 339,763,765 doses of Covid vaccines as of Thursday. According to the agency 187,216,168 Americans have received at least one dose whilst 162,174,165 Americans are fully vaccinated.
Should the figure continue rising in the coming weeks, analysts forecast a continued rally in the food stocks. However, this time the situation may not be as severe as it happened at the beginning of last year. Certainly, because there is a notable number of people already vaccinated while more vaccines continue being rolled out.
Stock Market beyond Covid Resurgence
Besides concerns of Covid resurgence in the United States, food stocks including Domino’s are heavily bolstered by the second-quarter earnings results. Notably, Domino’s reported second-quarter earnings that beat analysts’ expectations.
According to the Q2 report, Domino’s recorded a 21% increase in global retail sales. On the other hand, the company’s diluted earnings per share rose by 2.3% to $3.06 against the first quarter.
As for revenues, the company recorded an increase of 12.2% during the second quarter to $112.4 million. However, Domino’s net income during the second quarter decreased by 1.7% to $2 million.
Ritch Allison, Domino’s Chief Executive Officer said that the company recorded notable gains particularly due to informed investment. “Given our current operating environment, we are watching our two-year sales trends anchored to pre-Covid fiscal 2019 results. I am pleased that in the second quarter our cumulative two-year same-stores to sales were up 19.6% domestically and 15.2% internationally, signifying meaningful and sustained growth,” said he.