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DPZ Dominos Pizza

Participants
Jeff Lawrence CFO
Ritch Allison CEO
Brian Bittner Oppenheimer and Company
Matt DiFrisco Guggenheim
Chris O'Cull Stifel
Sara Senatore Bernstein
Alex Slagle Jefferies
Nick Setyan Wedbush Securities
Peter Saleh BTIG
Lauren Silberman Credit Suisse
Gregory Francfort Bank of America
David Tarantino Baird
James Rutherford Stephens & Company
John Glass Morgan Stanley
Chris Carril RBC Capital Markets
Katherine Fogertey Goldman Sachs
Alton Stump Longbow Research
Jon Tower Wells Fargo
John Ivankoe JPMorgan
Jeffrey Bernstein Barclays
Andrew Charles Cowen
Call transcript
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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Domino's Pizza First Quarter 2020 Earning Conference Call. [Operator Instructions]

I would now like to turn the conference over to your speaker today, Jeff Lawrence, Chief Financial Officer. Please go ahead, sir.

Jeff Lawrence

Thanks Sonia, and hello everyone. Chief of Lawrence, Pizza. Jeff is Financial Domino's Officer This to the the of Thank joining today XXXX. talk quarter you for first call about our results of

Given preliminary results, the we crisis also going weeks the addition the of with second discussing of are created you the share world, few some to quarter the results in COVID-XX first our to unique circumstances estimated quarter. throughout by first

all I members call this primarily our kindly is others ask so in throughout that the As listen-only you know, be of investor for and media mode audience, a the call.

made I statement XX-Q. this are statements forward-looking Safe find release the morning's you Harbor If you in can today, refer the to and that

me, from Executive to followed with back question Ritch limit before start Ritch for comments will call. closing one to We analysts analyst during that Chief our we'll this ask then questions. remarks themselves We go update Officer, for taking Allison, by an

Ritch. turn With that to like I'd over the to call

Ritch Allison

all joining Thanks thanks you us Jeff, to this morning. and of for

the take around our first of as to the through some as of of second the focused to your estimated the we're I'm performance Jeff to that things business then share and be walk the forward the do, questions. to weeks over hand some following circumstances, how morning. a it that, we share of some both preliminary this then come call I'll here to in and different making then to we're that serve. I'll QX happy I'll Jeff, members communities approach the going from will who we the U.S. the to and then the talk team we and Given we'll are on back some XXXX look quarter. always first crisis, details discuss perspective about to our remainder you take on around we responding will results investments our also some the to COVID-XX world. speak and going of in we're that in the extraordinary few

a morning, COVID-XX So first business March, some we this call information On pride as we're to a we ourselves with this perspectives XXth being We get transparent with And that begin released and roadmap of quarter that business started. our with on responding the crisis. and helpful was our stakeholders I'll for how hope to let's update. on you. preliminary

QX in morning, So, I my shared some won't the time I've on this that as on release. quarter in spend already comments much of my perspective

the much facing is forward. will crisis this restaurants rapidly is that reality navigate will what the eventually going we an and to industry we're abates. many to one take crisis as crisis existential very knows is changing and on how continue no are The or form restaurant present going world on The the more survive and focused how industry this

very strong don't this know how the both during to what and at be purchasing and brand the financial crisis after patterns also the enter position, COVID-XX in we may levels. a We this We year to and crisis. then were fortunate and consumer believe behaviors franchisee at evolve

of Our $X over over EBITDA level $XXX,XXX and average per at U.S. averaged increases in XXXX. the in XXXX levels. EBITDA franchisees the estimated in million store Both enterprise figures an those are

wage and on we're healthy remained vary that our factors, of levels profit that pleased know significantly throughout the XXXX. other levels number and we but a across Now country based strong franchisees

gloves of stores, our as as team and new know such will for franchisees Looking investments and our both business, masks, costs COVID-XX with face and franchisee items service members. forward we into methods with to here thermometers number corporate along respond XXXX, new we and in a

us allowed and stores around well carryout brand our our of this a to continue and and team markets as members the customers positioned delivery majority the the with in our model our sizable are serving world. We has business employing and

are through to As our this we CEO manage values. with proud the challenge we leading across as globe, I'm that say very our

at thing people and serve. right health communities are: store Our and values put number we and for franchisees one, the first And that do Domino's first. well-being prioritizing members, two team the our that means of us second, the

essential. we the convenient, provide During continuing carryout communities take have to where been this to it extraordinary for seriously. those very experiences delivery and deemed time, our We reliable take services responsibility

stores Fewer temporary facing closures. than customers. and All serving remain U.S. currently in are XX are business others our open

our has we're to a said, business that procedures standard and with last procedures has months. here two XX-year-old adapted most I our weeks. say have over the folks Domino's, environment this that operating our brand last operating of new Now rewritten standard inside the six in model U.S. to considerably changed

moved country. the contactless We've to XXX% model across delivery

contactless our made stores. drive up to have We available all carryout technology U.S.

distancing our social We're stores. us they We to pick our have their customers orders. in from practice eating to customers asking sitting temporarily carryout when up visit banned and

members our social have distancing chain there. and our store implemented We protocols team supply in for

additional we proud supplying franchisees. protect and our Domino's, food priorities, toward U.S. At and masks of have And customers. but I'm been safety top our our always procedures and to efforts with thermometers, teams in them incredibly our recently our we've there. are addition resources cleanliness to and devoted gloves

embrace elevated unprecedented members is team It to change like franchisees surprised I'm their and truly but to U.S. our shine at these serving rate, commitment not to their They their at times also they communities. continue brightest. that safely when see an have

remarkable working operational. successfully open a supply chain chain our team, newest to into stores. our very on March and we XX. of fully Through centers South center flow supply safe Carolina in our of Columbia, also All We're our stable opened with U.S. supply our suppliers remain the and product efforts of closely chain maintain are

this so crisis delivery contactless supplies job sourcing significant to done gloves, responding in a these and it supplies of chain a put demand are They've continuing items into a masks, while ways. cleaning just under our of supply operations, at core They pressures. new time when proud thermometers, I'm also incredible just our team. effort tremendous

periods the provide this first estimated to transparency the improved two weeks detailed Sales quarter to midst this sales last of in to morning as we in second share this XX you this Jeff relative morning, ongoing our effort have of going crisis, the And around four is first U.S. to our our the update. an in In more March details business the results quarter. preliminary call. later for released of

to the many shelter factors cancellations, the and of U.S. will closings in days and the event orders, and and to analyze business impacted such continue delivery rapidly-changing We we and trends across cities service observe the be methods, place by consumer vary as that in carryout magnitude dayparts the behavior. U.S. towns continue serve. Across and purchasing which in school week,

markets temporary Across have number entire closing in and of necessitated of closed our international temporarily markets the in circumstances stores some for business, of have a time. the unique cases, periods varying

stay in franchisees to markets the affected continue these with in master operating stores. contact We

approximately we Some as reopened and we X,XXX. X,XXX look to soon April peak, XXst, number was closed. already international their that remainder stores of At have forward our And as stores possible. the almost them as had reopening of

quite three This of the morning sales results dramatically impact our second we first quarter. estimated for the markets. released also across weeks preliminary international COVID-XX stemming sales The international our varies from

service seen we significant declines where sales. and we restrictions, in major method markets, have operating have Some hour same-store

to In of our and markets. few gains recovery other quarter same-store the see weeks we by recent be strong pleased first to and China first We've over weeks. strong the sales in in and to steady in are market remain QX. early COVID-XX sales last in our seen impacted was recover accelerate there significantly the

today, doing through of across end and markets been around of grateful crisis in found they the U.S. international ideas for the franchisees themselves front by forefront master international sharing new in the best rapid the their the I'm very has Much this - resiliency adoption inspired world. I'm informed proud their globe. on that as the our of right practice and of here crisis. what markets our on we're and this manage also

now some and we are this our supply and heavily are time, chain In stores turn of we crisis. investments teams centers, I'm this making communities. communities to our attention uncertain supporting serve. in teams we're investing to going Throughout the corporate during our committed to and our the in in our teams that we our

have corporate health remainder check. the of benefits At store anyone and least at Domino's, don't want between providing additional to pay period enhanced from in We're committed store period and hourly sick team least to May. have our pay chain our pay supply team the also a over to hourly bonuses to at and through the choose last members We chain corporate mid-March XX-week members we through pay year. their their to supply

was Now registered not time Domino's time that is Domino's members, in I'm And Its most the members. It's corporate the say its across need Partners that members Foundation of particular Foundation. donation of payroll proud summed a you mission probably globe. with significant of during funding Partners employees. a established to the familiar the source team primary members team very making through up team team are a franchisee crisis. Company help of to deduction and Pizza to helping this is phrase in our from need at is help XXX(c)(X) to

franchise we these be as many owners, business a that and of their are position similar grateful a independent to brand are proud making We're make we're investments our very members. in team able in of to whom investments

U.S. and career hiring privileged and in more a than employment to within the across looking Our Americans Domino's we to to and corporate With a XX,XXX unemployed, position are feel system. franchisees stores supply newly the employees still many centers, offer Pizza add also been chain opportunity have be

we stores in We a the as providing making to the communities supplying This provide across U.S. pizza this while around are with XX of Need work. We're for program, live a program. our Feed franchisees our the corporate partnership by generous U.S. in to slices brand million supporting the the food investment and committed also is labor. being significant We're where and recently our launched the franchisees

the In We've children, in empowered essential reduced first In who grocery are their places, it's lunch. no some country it's retail our responders. hospital places, school other workers and it's In to franchisees free communities. many the in or stores identify longer specific across in and some workers receiving areas. needs and others,

times in has exception. because of back given crisis, isn't This Domino's an new isn't this always

in some all Domino's communities. remiss master support our the are these doing to really up similar franchisees, things is over U.S., whom to I also our and didn't world, the Australia U.K. the stepping of this the are highlights From many While India I be morning would if system markets. thank to their international from

during need our we ways expected investments both the cycle a you more will to comment in investments to our this search our impact As second on the and the are These to in will teams communities crisis. in for make system, these these will detail Jeff and to during are invest happy to just financial in during continue of next and to earnings a be moment quarter. provide material feed July. investments we

with Jeff, excuse Q&A. to you walk of thoughts I'm to to come have who the I and quarter move weeks, few with over the two that and through and that back more a to of some from we it QX highlights share first estimated hand I'll before will the first few So, me, results of then going weeks you - preliminary

So Jeff, you. over to

Jeff Lawrence

and everyone. Ritch, you, morning good again Thank

few consecutive the U.S. provide Starting business off positive for restaurant continue lead cover financial the quarters well positive we quarter of as for international straight results the industry weeks as preliminary quarters second financial the quarter. first with with quarter sales results, to XX comparable a of XXX of broader the I'll update comps. first and first the brief

number new count new We of opened net our quarter South was closure This Africa pandemic. the market stores, global XXX also in XX unrelated includes to QX. continued store comprising increase net growth that the the our stores stores XX gross to during and store the as we COVID-XX

results. operational year of significantly an prior quarter, tax resulting diluted and effective EPS was in $X.XX, over increase from the XX.X% Our a rate primarily lower strong QX

With retail the by compared the as financial of negative same-store higher opened average in global grew X.X%. retail grew impact QX. sales take a closer look at and global X.X% sales Global quarter number increase growth the retail a results This that, driven by currency, let's year an quarter, foreign of stronger by both for stores sales. prior excluding the When sales dollar. to during pressured the was

business down the X.X%. X.X%, prior stores The Breaking a growth. ticket And X.X%, Same-store increase sales this our U.S. year our driven up U.S. our international was by for up Company-owned quarter of increase sales of same-store comp X.X%. comp, grew a prior year franchise the was U.S. business for rolling lapping while grew over X.X%, X.X%. were

robust continue dynamics. for QX business, carryout growth to negative, with comp consistent delivery previously-discussed market see was We while our in our slightly

Our entirely to international the COVID-XX X.X quarter We comp by X point pandemic. negatively for was the international quarter comp that estimate for growth. points approximately was impacted the by order the driven by

On first XX XX the we closures. stores five opened unit front, just store U.S. openings the net count of consisting quarter, in and

Our net XX stores XXX QX, XXX our the international new added during of openings closure stores South comprised of including and XX division closures, Africa market. the store comprising

the revenues franchise York for retail by exchange first year, from during New partially royalty in sales, offset increases drove which by X.X% Company-owned up foreign were These store the XXXX. store QX driven and sale revenues pressured supply were by Total higher lower revenues. of revenues. million resulting global International the quarter quarter to by prior currency were chain $X.X rates. higher global Turning primarily from the revenues,

Moving margin. now to operating

sale As revenues, higher operating increased margin York impacted the was a global our for positively the percentage store from New revenues and by consolidated quarter to and from business. franchise year in prior of the quarter XX.X% XX%

million percentages year and margin decreased prior expenses relatively Company-owned $X year-over-year. the G&A chain operating were compared similar store to approximately quarter. Supply as

this benefit our invest focus see business. important We the in initiatives continue while of to and continuing discipline in improved to strategic throughout area,

see was year quarter up rate related When a reported percentage first XX.X% tax Our point percentage on tax prior the points continued benefits. We in million to the these in expect quarter, impact XX X.X% over to rate prior quarter. net quarter. down it year $XX quarter add volatility effective compensation. reported rate included from benefits negative up, The effective do positive our tax from XX.X tax the tax or the you for equity-based was our income effective all

a first versus EPS in increase. XX.X% diluted quarter $X.XX was Our was the prior $X.XX year which

down breaks Here that how $X.XX is quarter. increase for the

effective tax us benefits higher lower impacted from positively rate, tax resulting equity-based $X.XX. primarily Our compensation, on by

resulting average $X.XX. count, improved by primarily negatively interest And from us over Lower primarily $X.XX. XX from repurchases benefited share expense, debt months, net our by most results by operating diluted balances, $X.XX. resulting share the impacted us Higher benefited past us higher importantly,

to turning Now cash.

deducting balance million, more flow of quarter, sheet the net we $XX we million. first for free normal During by operating CapEx, of generated than cash movement. pressured generated by was provided cash After $XX which activities almost

note During $XX were per we QX. All shares the in in good quarter. the the first retired first all, repurchased and of average. first quarter, the XXX,XXX on made important approximately business share for $XXX repurchases these quarter to million a for or during It's that week about

store update of did our As discussions, folks information. which financial we now business comps, to QX move I'd we XX, that from like preliminary including remind issue a sales QX estimates information, contain global on retail growth away March and selected

the food business to operations, COVID-XX, economy on the the global CapEx, market foreign and related basket of due and We impact uncertainty guidance the withdrew G&A, our considering XXXX currency we revenues. surrounding measures royalty store to inform also pricing that our

borrowed as measure We precautionary also available outstanding further note that financial announced strengthen under remaining the our funding a to already us our position. strong funds to variable we

which for business is now estimates weeks gears unaudited these few the being level like provided how a with switch of performing understanding high the results. assist This for stakeholders second financial preliminary during available I'd we extraordinary and update the contains on the is of a to quarter information first business our to give times. and have

the U.S. the same weeks this trended over business, QX. were of significantly U.S. sales period. XX.X% up time up X.X% were Sales up four four-week In retail during first the period. over comps

relates customer seeing to generally As behavior thus this crisis, it what far. during U.S. this is we are

been average. result larger and night while significantly are going Weekday carryout we more Lunch we had these more are weekends dynamic up, experience generally initial have are this mix Delivery environment. Again regarding late holding dinner observations of on are been have consumer volatility seeing and pressured. as up, steady the sales relatively been throughout in a pressured. and sales order week. while And forward behavior our sizes may dayparts

business, that was due of by COVID-XX. lag negatively reporting international the international three we weeks international first very of the weeks in only the business. comps normal three To QX of are note clear, our QX. In sales be during to the here Important X.X% that reporting last the were of weeks same-store comp to down two three for weeks sales and first impacted QX information

in due and in restriction, even limited occurred sales The a service restrictions, week for had delivery is the the in from sales temporary a closure store of were definition included had that and store hours. we're not that some dining and/or was primarily negative carryout week, results. a sales week to impact change markets entire zero however, week part it If closed but a a same-store stores in and/or or

XX.X% retail the on were have restriction, other time been many international. or operating have closed over the Moving temporarily reflecting that for excluding sales Retail down internationally sales, some sales. same impacting to period, FX stores

Turning now partners. to our franchise

We to economic our have franchisees provided not widespread globally. relief

model time persist change the acknowledge on we underlying that our our past partners we this and to have could of attribute earned crisis and alongside strength years. While over us impact its on current this economics situation the that that results, our depending overall the the franchise of many our period overall business

been the more and evident. strength has never resiliency The Domino's of brand

and pressure as these gloves. on franchisees our and of members coverings with enhanced making million. We during policies, significant investments partnership bonuses, approximately $XX crisis, investments to such anticipate in pay community of our this Ritch giving discussed investments earlier, we including As earnings face time QX sick frontline team are in our related communities supply our in and

trends we've anticipate Based to additional temporary we on to could lost seen those QX store from to international earnings stores our franchise our of million change. likely current are estimates $X very an on and are related due also preliminary pressure and These approximately date, revenues closures.

change remiss also if currency we substantial rates we're be million. for FX cash would as current in We This the and earnings could year, flows XXXX foreign likely a hold didn't preliminary seeing of remainder it what to could fluctuate. believe the to and the $XX be markets. on comment of is approximately continue If very headwind FX we estimate rates

this cash in available more currently operations notes far. now we funding repaid Out and ongoing the liquidity million business mentioned. cash crisis available on have that positive included caution, than Shifting so abundance of provided and not and to is we matters, cash balance $XXX amounts have an of the that we I during to cash variable just our have in note our cash flow net

on continue March invest We declared previously our we to strategic initiatives XX. shareholders in dividend our and paid our

earlier our have week, paid declared be Board a program first Additionally, share authorized XX. to Separately, of under our on this Directors repurchase not dividend share any $X.XX repurchased week since June January. shares of per the we

our have under reminder, million authorization for currently a we Board $XXX As remaining future repurchases.

In operate to these business and times. uncertain we our monitor closing, as financially in we continue all will aspects in closely good shape remain we of

our today, for tomorrow. to coming while continue We thing best ensuring of our focus to positioned out right this survive, thrive the team crisis are not but will only communities members that we on doing and

the today back you Thank for turn call Ritch. I'll over and to joining again it

Ritch Allison

Jeff. you, Thank

business restaurant we of attention of into visibility we each pandemic to duration assess to will of priority franchisees, impact also to That customers. on like on steadfastly XXXX Domino's continue execution, have And members our more to turn and will any experienced. always safety service and to the have basis. through We'll is ever uncertainty our on COVID-XX. by forward. created the magnitude our and value Across not continue do bring ongoing an headwinds industry now remain our us industry one. navigate than these the and or to team clear health the our continue of looking focused and everyone's this on focus would I the remain focused as globe

impact sales around and We do our cities the will expect communities that the to greatly U.S. vary and in across the XX markets world. continue in the

Given the the as on timing of openings general with expect factors forecasting make a place infection curve, significant this so permitting down interruptions, closings and have slowed see business crisis. We other difficult economic to shelter store conditions, orders, sales and more school during do impact than construction university year the and many our and municipal uncertain ever. along dramatically

the should around visibility better ahead. in growth have We unit months

business given this, unit and for withdrawing global as in U.S. year as I retail this growth all outlook to do forward. are and mistake clear, growth. long-term of about of success global three remain about we noted brand. two growth to the very same-store So not Domino's sales release, sales our same-store want growth, I and that looking be optimistic net the our morning's a optimism international lack our sales growth, of brand

environment, just balance operating all for in us of In position manage assured business you through help ensure doing sheet, that we uncertain near-term and flow and cash environment is success. that the we this believe an are long-term the always rest the and much best ourselves what as There carefully us economic to our this are at outlook can to will areas current we managing for too provide time. uncertainty

world. of managing our as and serve We confidence emerging our Domino's simply beside individuals and have and grateful brand even to I group in stronger future. them are is am committed COVID-XX logo. extraordinary no There teams system a through that would that I each approximately the every and rather proud stand the to people day. XXX,XXX than around wear a in the the and I as to in franchisees I'm

And I your questions. of some to happy be will take now Jeff and

Operator

first from of Oppenheimer Brian and Our Bittner comes question Instructions] [Operator Company.

open. is Your now line

Brian Bittner

gave, unpack seeing this what a measurable think there lot can But weeks, etcetera. has the trends look perspective, from moving I better versus more comps. changed short in Jeff I the you than your day on but But the recent you and we color for of clearly seen to prepared positive remarks pieces part restaurant on on windows that your a you're improvement XQ this I know do expect impact improvement appreciate that at has your What when your is to have start there guys. be clearly a a last a gotten huge is you industry factor driving you that's us? know for I bit little just little the recently underlying business? several XQ wouldn't

additional anything maybe any So, that you can else like impacts on helpful. stimulus provide or color recent trends be will

Ritch Allison

it's some are it improvement Brian, the was I as a results from Thanks things the Yes, of for in question. come lot seeing living Ritch. think And there to the weeks. the we're U.S. started several pantry think But that very that I in. there we're the first situation recent loading is again, dynamic consumers to certainly, did that really a that pandemic fact of all

more And this. on of in I in particular markets we've end some that front were of the think seen Asian our as

of bleed As the time cooking bit pantry time. to people a that done, starts start eating loading they've and forward, same goes over the tired it down a to get bit of some thing,

I I near-term impact industry, are have that of here also dollars seeing from stimulus rest some of the think and gone out. the some probably the we, suspect

then of that control, are there some are inside our are more think would there things being I some but outside of So that I factors as our control. that characterize

with a very procedures that in protect contactless have the done experience have as also implement weeks, to system we've we course four pivoted over And our our our three across quickly to will the at and of if they what members to delivery you've last carry us. the or brand out and taken team look confidence give customers a

focus which on and cues, important very customers We experience pivoted to families. right significantly are important their safe a food have our now to advertising to quite those pleasurable for

our think think Brian, at Domino's as of some also factors that things well. we're So, I of a combination some doing here control, but I outside

Operator

our DiFrisco comes of And Matt question next Guggenheim. from

Your line is now open.

Matt DiFrisco

$X and XX%, want about the head. closer how about speak It's or $XX that charges, the but understand stores you can little or those lower would X,XXX on I math about million guess, those? XX% suggest just sales so. to you're million. with a than I Jeff, you're bit The to coming

So to that continue in is it leads you're correct the and estimation? open full to quarter to be closed not that expecting to assume

And then I in normal? new you necessarily charge investors also new sort want not that better it's costs front necessarily guess, might million, wouldn't are the new that I quarterly of the be in can as these investments an perceive just normal a to what understand maybe required the line that? and ongoing $XX mostly bracket bonuses, that stuff that

Jeff Lawrence

well Thanks, appreciate Matt. Yes. you're I I hope and question. the

shared the But would know, wanted kind new at give You we to you you our we we're is information first give today, you thing we best everyone shot I of right to preliminary, with seeing now. best what that the estimated we know on The don't the that going be. just it's live. caution is can what normal it's and it's

break about it my in I during talked buckets of the down kind that three I'll So big remarks. prepared

here we happen that and so to a environment, our yet, to expect a do out - the is and million for in build the team quarter customers The don't into weeks our biggest four members, only XX-week in we're our uncertain well-being again, communities. $XX lot of right know thing related an the bucket we safety

we're pizza, is proud to it's our to of do. in supply the and and it's thing centers and okay This that, for XX gloves, bonus our members it's that the in have significant with our be impact frontline able stuff this we're and million chain stores to to just this and team going pay masks is do pretty slices is a right

get to there. markets there, been average clearly whole is new and It's U.S. impacted try our on market than then are right. I'd they which business, not the the next has international into an singular the more business of the bucket,

in lots our look are different to but on, at known that million two weeks it's again quarter best what to is seeing go, that that's we guess It a dynamic of four things could eight have but going today. as There lower, of first going $X royalties. we higher, we're we're it super it's and the in and the about weeks take could preliminary, be be haircut

guy COVID-related we last indirectly view and to again it's to a number. at don't argue want of if know thing FX be a of preliminary least that the you or COVID-related, year-over-year The kind that's estimated, whole for maybe gave just preliminary, the going I could but year, bad $XX impact million it's of there, the

it's - add all three as look headwind. $XX you when million those up, of But a it's we today,

and kind our we're it of us. Some within happened it some proud to into of of control do,

So give now. hear continue that's now Ritch we sure you'll but the more XX additional happened July not for in the and of promising I'll will QX. four, July. you weeks tell and we whether right for today, what by from you give then tell and you detail We're us between best We'll assess any updates business to exactly anything can

Operator

from comes O'Cull question Stifel. next Chris of our And

Your line is now open.

Chris O'Cull

Company Ritch, changed is product if at the does so, timing XXXX? new all? launch still And plan in to the a

Ritch Allison

but as do managing we still different through were planning are today in to product new that that we for summer to still targeting launch XXXX. that launch. in summer a the And we still make Yes, anticipating operating Obviously to happen, environment are time.

Operator

Bernstein. question our Senatore of from And next Sara comes

is line Your now open.

Sara Senatore

seeing home are versus more, when being wanted spend. something to people headwind a weekend. that follow benefiting of the you're you're incomes on perhaps I on lower weekday up weekdays interpretation is maybe to I but patterns guess at weekends my business stronger the from the in

well, a help talk but I past, the - could understand is this little in of seeing when back to 'XX, play? me your was trying more the the and income anything of parse know at are turnaround So hoping about what sort to of category you midst stay home, role income, in may different lower just could cohorts be contextualize I and a across tricky, shelter Thanks. of of to playing whether because it's sort out in resilience just you you're income the versus

Ritch Allison

thanks day. it’s by day still we assessing for literally are Sarah, Ritch, Yes, question. this the

than week them. by there on these rapidly As a more Higher is continue the the weekends. these evolve some are during fact that families during week, I of together. sales growth And that patterns the home is think lot Jeff the driven highlighted to of at eating and quite

or on our There watch aren't down evening lunch while are like of and people better. then business late is gatherings events daypart, sporting things night And just and that. significantly, to much by dinner

having So, some certainly those are impact.

We haven't also are categories up and across seen dynamic people significantly our together, to are food home ordering think enough, eating also, are any sizes and interestingly income industry is Domino's discernible you of in patterns because people peers asked, at more the have some today. the restaurant order that's which extra really finding, are but a we're think interesting around as I I at leftovers in market finding but

restaurant it's at broadly period phenomenon and But seen this about really industry. the patterns COVID-XX of is least early that Sara the I things appending of for lot historically have the across our and think it's a one business we time, a in of

every day, adapting responding minute every So as watching we and of go. it every day are we and

Operator

next from question Alex Slagle And of Jefferies. our comes

line now Your is open.

Alex Slagle

to any in been and stuff delays demand's wanted potential on issues times discuss your more in delivery management the volatile. a and with as turnaround carryout likely perspective and predictable like Just operations that restaurants or times bit get less longer inventory

Ritch Allison

franchisees just their responding proud done and operations with our I crisis. tremendous really job Alex to in I'm a corporate of this Sure. think stores our who you've

of aggressively the service sitting standard our have As continuing responded rewrite I delivery our many just rolling around taken the earlier franchisees more country. last the to stores our operating to been safe we've no stores, And done weeks good mentioned worth and them despite corporate my prepared job dining there to and of job even terrific recent high a done contactless now carryout we've across out out sales, feature, levels remarks, good a down and which our up very of had XX customers. in and procedures in carryout, provide and drive in we've years increases responsive they've in of a and six

Operator

And our from comes Nick next Wedbush Setyan question Securities. of

now line open. is Your

Nick Setyan

obviously mean comment means you But to on guys? more longer the industry chaos for about especially of near-term already to unit favorable unit rate higher rates? you the domestic medium openings. that or across terms, You and hear could selection term the We're a much and better what the longer could the on guys the talked site potentially impact term medium in unit some to maybe growth pipeline growth starting domestically

Ritch Allison

Nick. Yes.

long out openings. in unit the permitting always strong growth fundamental construction over are the over slowdown open appetite they of here based the to all is No unit look in about really level as medium our So terms franchisees terms of we and near-term U.S. and on term, near U.S. it stores the changes as to in Stores economics the medium the in to in going the just in the open of term, have. slowdown long-term

a - some the taking Certainly, the we into out become the how are whether and and opportunities and may sites to potentially as assess we opportunities market remainder around think in changing or the about real because year dynamics look not some also might of weren't be trying available going of estate look opportunities through rent of incremental before what means or we are that and forward. that lease some extensions next, available

is much a been in don't know while we now term. does tight long estate our medium and has but a going look out to open exactly as open real pretty bit that's it up, a how for guess to the up that probably market It we

Operator

Saleh comes of BTIG. our question from Peter And next

open. now is line Your

Peter Saleh

seeing anecdotally you any guys and feel you reflected independents, markets if seeing you've leaders the the of general you that the are of sales across independents, I of the you that sales guys on while being is kind or at by or like right I healthy the just the they and so see sure least the pressure or to see landscape lift do been category some fairly is the this is now know XX% pizza closures category guys wanted the many share as it. some to in you're taking ask still point of at taking in I'm feel like guess, the category? you're are about the pizza, share. entire of I run

Ritch Allison

is to right early out don't are look how know, now. still and you any restaurant landscape, don't across industry it the we many of I permanent lot tell closures. of that those know take there know. really lot a a want tell how out temporary we so of And of there those are many thing of honestly will a because restaurants When Yes, open are not lot we the think did to independent restaurant the I restaurants closures. of last independent us turn I in there a see into And is

as that Domino's, a believe We are - brand. like pretty positioning do we I do In we have this, and certainly carryout has player think a time that at resilient we here the early help I helped right will continue don't in us think and old consumers the to this going the part of us behaviors. to are to think because snap patterns back And crisis. I delivery

ultimately we to important the think think many that months contactless for are I contactless carryout about this to capability when in going evolves. how I be we're come, and building think to continue delivery

in ourselves putting being up So our what competitive couple new capabilities really of the as today, next up is we set think It to about it's industry. end not in the may that just in to be in months. normal place we're the

Operator

question Suisse. from of next Silberman our comes And Credit Lauren

line now open. Your is

Lauren Silberman

contactless that Thank plans permanently. of that just or changed the And turnaround will transaction point at productivity delivery and made, all? A delivery will be you. you available something be you the delivery then economics said contactless

Ritch Allison

offer longer yes it, only if that customer, experience customer on is going of of country. period contactless of I the mandate back extended it the we portion and/or pull do time, that think that delivery some is delivery for in Lauren, actually the business. of think carryout in want the to that base delivery now We've I the And even going made we a contactless at it there that some still to So, type U.S. the mandatory because the across side to is do right going we be to are point in and no

cardboard we relates it innovation that - an is a we've if the the economics we pedestal rolled not. pretty that cleaned or on it's don't we or surface don't other some on around pizza contactless, call directly just simple know delivery so our ground As your the have put to been experts Pizza Pedestal, which out

are things like costs there that. associated with some minor So

to or choose however incredibly who order customers' I'm contactless device innovation experience that addition proud to of our to bring contactless, to they the In actual technology physical us. of and also from moved operation rapidly teams handheld have the

in transactions see easier tipping And prominent of innovation we the delivery more that debit experts make see includes is come more toward and the because as of this digital some from to also out decline experts customers that income to of in our move or any delivery to rapid experience, a our thing ordering either cash want away and last card transactions. and credit

Operator

Francfort comes America. question Gregory Bank then of a And of from

is open. line now Your

Gregory Francfort

And Just are China I that are versus standing terms trends? seeing guess the out recent customers then I with that say clear in positively personal any how regionally differences in Thanks. sales you running are brand urban did or using description. is clarification, weeks? in you wasn't the suburban of U.S., or

Ritch Allison

Sure, Greg.

proud Much And innovations in the forward. that team team sales see brought China and are I around first seen on based you but the pressured, early China So in incredibly pattern have our we pandemic I early and in the second of in across to sales improvement were on on quarter the quarter. here tell delivery footprint got positive latter China, our doing of did was China. our China what XX,XXX in contactless we the where in a part into we am of weeks store of

of We've answer how seen and based the yes. its proud that also to how they impact moved movement different has of the our of but system. differences, kinds regional on the this of really have their only really is contributed really, in it business not And severity performance, places. pandemic So of country all terms the pace is differences and across with in then

- out, those level that we to and you that we many for still others XXrd the some places turn all on, while in ramp have news as April, there of seen certain most hotspots certainly some those start peak serve. significant have sit and see it's COVID-XX. in here the that in our business If on it's the We've evolving And situation communities been impacted we are geographies. of still an trends up performance places

just can There those they restrictions as differences in is travel in what in terms some aware, also terms very have in things business all states. I'm put have and be other and are what states in municipalities responded sure you of crisis can and conducted to customers and of how local do of significant the terms what place

Operator

Tarantino next Baird. And David of from comes question our

line now open. Your is

David Tarantino

is the of I hope on two Ritch, really well. doing international business. question, parts It's kind is My everyone it. to

occurring that the stress for work outlook you through internationally And be And to unit related as is this? to a How managing we perspective? then you closures. they is moderation that? the growth system, the from or and related secondly of strength time a seeing are they're to see they're widespread how relatedly that or do through all signs just see stress managing being do financial with large First through ones in system are the for the will in appears that think

Ritch Allison

Yes, the your of first part David, question. on

international who positions business came to I going like very our we there where really to strong brands' so a financial a in other be fortunate - got into a by ability of a perhaps traded relative is master are crisis into think to this this, with franchisees place crisis publicly amount managed weather we've strong significant some this.

time. hours, your significant those most methods, stores in some declines but are even substantial a to in close close very service in of country, or described, of open, limited or very a all that limited with when Now period Jeff result - do number or you when sales trading said, places, in our as some retail certainly, for have stores

international also that safety liquidity reopened manage to the working and are appropriately appropriate are hard franchisees markets. things being of doing customers, you they're are we've their They and are do. in to expect and already cash they large them the - sure would all and really of operations. stores the a also but master the taking manage steps mindful that make Our to seen members foremost those their of to their couple prioritizing first They team get

would Spain but reopen where stores and be in begun have period closed two time, to of a for those France were of each completely countries. we

And actively We as to this international those with about and do so of talking their position. course continue very touch crisis. are the financial staying with we'll work master in daily through franchisees them we together

in in growth as most certainly certainly part second had where slowdown in U.S., or see delays in many of your then there The near-term that some some store around growth holds shuttered, of near market we I significant of permitting entire in store are unit number Much the pressure, delays, where true in international the markets. results growth. certainly markets a unit there. and closures the there on of described been question construction And an we've the more term, those will impact are the that have under same

come brand believe of to our the will brand a the very we around my healthy grow do COVID-XX I this with which, come will the the out over what is I back time. you over about the as And drive we economics unit talk growth crisis store we I footprint have across significant still term, that But long world, that always to ultimately opportunity with a is expectation globe.

subsides. who lot well franchisees a back got growth this and managed we've of be outside the capitalized that we've U.S., eager share know, going as and after master are to got you well As to get opportunity

Operator

And next Stephens Company. & Rutherford of comes from question James our

Your open. line now is

James Rutherford

taking for thanks the Yes, question.

to down in gone the other first that dramatically, if I'm because impressive ask your to comp quarter? orders was parties Just improvement share I here of of assume curious, the can one four those occasions second large the that group how in X% much me. meetings the orders, COVID-XX I related U.S. like to mix you weeks kinds been from have of for which the have drive more makes prior and and Jeff sales

Jeff Lawrence

behavior we already. and given here, of to the of weeks I've the fancies We're trying first peek related the for during be out kind anymore James. Yes, at but aren't and QX the four Thanks guide, question. as consumer the you transparent into can as insights least

can You aren't orders that people event, that those to your imagine around favorite sporting watch get used to there. television

sheltered your If are home ordering those because larger, for looking in are next couple might the family, your orders some you be in of for you days. with leftovers

building, an work If you'd you that office the those for buy that are with pizza you occasions gone. had an folks occasion in

global although out We you as complicated and the crisis. is is positioned want better I So going consumer it tell tell it's continue Pizza this. will do. with alluded behavior more don't just is, after this crisis. fill to People before, one during we I than super to that and just industry Ritch this that, to can our really And are know it eat still resilient. But we believe as than what how pizza the in - early and is through of hopefully is you there that franchise that we get will flow world to demand ebb around no partners this no

So, be all there occasions. for the we'll

of innovative huge now the procedures having our lot industry. give they in and Ritch the in partners being We'll make standard world as want operating about what business other more that around versus continue a the to a sure vertically competitors we Again us real talked the consumers future. tech, of integrated give advantage the to in

and done, do. feel members to that continue all can going to like get we safe can So, done we our if customers we're in first, we our get team anybody put it it

Operator

Stanley. comes question next Glass John from our And Morgan of

Your line open. now is

John Glass

to a the growth in customers time metrics capitalize program maybe you up users? the that visits any of around recently different new Thanks. How way are to customers? what that get of from during be helpful? Are maybe and them loyalty would incenting loyalty to you're period in you sign this doing on customer opportunity new lapsed or seeing many are coming And

Jeff Lawrence

absolutely talk seeing a customers, are and uptick dimensions. John. on Sure, I'll it We an of new in about couple

shot or seeing given us trying out the of availability I the time and for customers trying us several may weeks. sure the before. folks getting, we restaurants you just pretty that significantly there. You a doing We're business in well. first are are be food our with am types again know, we with that know as some new last customers what up digital The digital getting ticked has we're weren't us of percentage Also seeing is some business

reported recent I you, least digital And digital. the we think one were weeks, running quarter, we week fourth touched we're XX%. at to over I in XX% at where we've had for XX%

that So, we're coming that's in. contactless customers also that another benefit we we're go seeing is channel that are into as this to digital space

Pie we - that And are those we platform get migrate order working to Piece and actively them the that for well. second are loyalty of our customers customer the from - to to digitally, first that Rewards actively the for order got ordering absolutely digital working to as

john. So, previous couple COVID-XX. didn't are that But the it's months, certainly, leading we to customers still opportunities in early up we some seeing have with of

Operator

Markets. Capital RBC of Carril Chris from comes question next our And

is Your open. now line

Chris Carril

environment? positioning, specifically rising and aggregators there the on about off-premise value thoughts is ask for Domino's shift will competitive So more its to the to the delivery? pressured wanted any opportunity for especially updated with I macro environment a dynamic more demand here, in in how highlight any current

Ritch Allison

Domino's. It the the where and When we've trained food, to to the it particularly glad what also and was in it Well, over one decision operating food delivered trust that - me relationship comforts not Sure, our could plus XX% is think the we and the current continue experts glad about that who am that we're certainly to customers, time digital. front on I'm a about that platforms Chris. like you that this. door so customer to I that I to I is how time talking now know thing very our on in tell own that matters rate as are delivery uniformed in aggregator end, XX prepared knowing these to them. environment Domino's made it are the run we're bringing needs of

the the it in, relationship as that well. ever restaurants many of the closed trying them to there to continue for said, lots first That even the environment critical are own and with more that virtually to with and us customer through dine for in all are digital that customers think than of certainly time, aggregators. is delivery lots We current

we dynamic So ahead. this months very is look going as the to over environment be a

to behavior were And sticks of guess committed doing environment, go In back we're all customer learn ultimately my they are customers terms to immediately business the these changes staying delivery staying because so is focused things in know value, what on that carryout term, offers. and the we ultimately on staying to important in what before. for on don't our that our long value very to focused the value,

very remaining focused service. also We're on

of is happening One been very across the right business the of tight Domino's couple delivery market years. that a the aggressive incredibly labor things is The for experts. now has hiring of additional U.S.

in U.S. our up in As in has the effort people of XXX that weeks, to corporate XX,XXX - that time. our sensed announcing we've hire hired store team period loosened members has just recent limited business

customers safety of element methods operational the from provide visits our enhanced changed the a of through contactless really service how is continue to of time. awareness, on our then all to out key through of this And cleaning that time. during to safety these we staying audits during forefront And we've great this stores,

into period believe us forward continue well position move So, as and those the crisis will we to through we time this beyond. actions of all

Operator

from And Goldman our Katherine comes of Fogertey Sachs. question next

Your line now is open.

Katherine Fogertey

environment. a the view get competitive given a the you you if and any whole has that drivers your the about the with advantage seen package positive on wanted stores XX,XXX your or hiring, aggregators? give delivery I And how either the could employ mean current expert mentioned comment, if of and Thank on you number thoughts point if in hired you your at little you've how to system you. the change can you a bit fact benefit vis-à-vis that many negative turnover

Ritch Allison

Katy. Sure.

their their the volume another have So perfect I we since from has can morning. we for we're effort. saw have to team really we members visibility million that hiring, and increased file to franchisee applicant that trying the this And significantly job, that tell into across what system, you unemployment just X.X folks to the because XX,XXX train. on we is began the is unfortunately that our don't that conversations But hire hire the

people coming our work a out out is there right applicant flow now. the I into of that's And Unfortunately, lot are stores. are that of to that increased am contributing there that certain

to our economy. someone what is relative proposition working in about think value I the gig As

environment an quite are set schedule Domino's in people is where from been a franchisees or many think having one a now long jobs has than losing think time. from so more job the a it valued I probably Domino's probably and of their W-X a having in getting I

period team that's to store in drivers and store as our enhanced folks as well. with been have everybody the a tried a during sick time We've make this commitment bonuses worked through crisis members our to strong very that we've XX-week enhanced corporate over pay benefits

continue employment a opportunity. then So, to over the term, here the long opportunities looking that in to also near attractive we make very are but term also for

of and franchisees there delivery And just working times. that drivers as Well then available many opportunity off so finally, it is we've that's out the XX% U.S. a that the career or economy. about inside isn't talked started stores over folks our gig and

Katherine Fogertey

And or stores turnover. down flat here. the then seeing comment stores? go can just question you around in Are be you my Company's so if just on turnover up, the Maybe

Ritch Allison

shifts any short major It's crisis. time seen we've in this we period of still Katy, been haven't really a that turnover. in

things the So, we'll in continue as to months more probably ahead there. know unfold

Operator

of Alton Stump Longbow next question comes our And Research. from

is line open. Your now

Alton Stump

point, your an industry in to of of on an front? sort restaurant obviously, there cost down savings? Is questions the You've of for labor Thank Is especially kind for been your Ritch. an to are the cost looking your couple guys but on people you opportunity given labor the you bit opportunity asked, awful there and/or that that little answers bring just up front follow on work to potentially of lot a that my for are currently. average most fact have the just last of going franchisees

Ritch Allison

to little line We're breaking up bit. your going it's you a ask was to Alton, - Ritch.

XX% If I that just about you and of think down Jeff repeat I could just We to little want it. bit slow heard a just and question. sure make

Alton Stump

I given that labor in especially just industry front obviously there fact that. that currently? at asking of Okay, sorry a are to about was work an lot the money opportunity are if looking there is save people point, cost of kind your the restaurant for

Jeff Lawrence

Yes, Alton, thanks that. repeating for

employ our and way. You we're people more this very team very want anything them want is be time that and paying lower we want way, paying not franchisees that a to and don't our to If valuable that to think as be Ritch clear rates think know we that I bonuses, members, clear the we're don't mentioned, we more. we to crisis pay a

finance like a would things but You not that. efficiencies about about know and I'm right now, frankly, that, I think it's quite guy,

stuff. all them small it's us we'll hiring keeping jobs, people people continuing on. another playing, We're for on we as really role actually people data it and about rate And the right For of focused more to run employed to of an that labor we're that's any get very are FAD. more taking giving leave service kind what efficient seriously a proud of now, more paying essential

Operator

from on open. And JPMorgan, JPMorgan. question And please And John John John line Ivankoe is comes if next our next mute, Ivankoe, from again Ivankoe of question you. your our Thank your comes unmute. now of line

comes question Tower from Wells Jon of Fargo. next Our

Your now line open. is

Jon Tower

Great me hope, hear you can okay.

couple a all to Just across of also budgets seem dollars the delivery pivoting towards this whole, restaurant but quick down me. from are advertising off-premise channel. as the a or space ones Ad be

consumers seems how to and when that valued through focused this there about managing time through communicating to you're you're on breaking to channel? be talk you everybody can in this consumers So frankly that one

lower I'm a if some the to crisis? reason closures believe are about and/or pivoting we're the see just you. but rents now, this store end, this unit curious the any on of to to then crisis. Thank be And you right pause, of end - can't strong into community back particularly at taking there coming the is that growth franchise whole U.S. And health growth. ramp talk independent you mentioned you very you could faster the is going

Ritch Allison

Thanks, Jon. couple time as in out to out to of voice we our continue around the One We around we advertising a in look as absolutely the is it question hard think there. at about lean spend it. On view your there on getting that first market. things a

bit on we're during back advertising So, pulling not one this.

demand things there GRP to there's but broadly And been look of therefore been lot of there across the money marketplace just a we you the out folks of across of last there as the out And frankly, a years. in customers heavy course same on spotty one advertising, out the the restaurants, that that the not all reach. lot for delivery a has little of couple of over want spend

on got about about out come We buy just share our on it. and it the talk certainly to serving about It talk relates category, getting most it's to And delivery as voice service, we of - some see channel. expect some is this wallets, in down focused value, benefit of to the continue that customers. the want continue within we of there to all to We've spend safely really invest that to that full just the anyway. may delivery against overall. got to then GRPs the to talk of We've

they And proud And so ad back of weeks I team. last advertising prolonged so am through they you to much produce I more Normally have look mean go we pivoted an the quickly. a week. a about if really advertising. cycle produced our over six or

that to stay that's happen is we've nimble very for that So we're terrific a making us. just and got trying team

part corporate most can of that all the by crisis And back the tell of I view going to the the second would to franchisees unit We're the assessing is unit economics. certainly to. growth our driven you how even opportunities opportunity around store I the end to there and are was certainly cash at talk going your faster. are returns be go time, then growth. if that, love about accelerate business, and our question level U.S. And as we do the unit your cash for what Ultimately be. might on I

Operator

next our of comes JPMorgan. John from Ivankoe question And

open. Your line now is

John Ivankoe

on a we've Okay, then the about. clarification follow-up first theme been and a talking

number carryout. can wanted same-store of and outsize we in mean just mentioned of to terms transaction does you was mean I same-store transaction a transactions size increased transactions gain, I some got First, it what see different sound ticket delivery times. count. and like you on comment happening

Jeff Lawrence

Yes, John.

very environment increase we X.X% early, as dynamic, this in U.S. looked it very food comp now the we more than ticket reported for ticket the important that new that's thing way the remember the but here for was is we system, part of the period the in to more overall that But again, look orders. as So the at same entire certainly order. includes

So, more order used about be when bag. stuff order to people kind in well than lock - you an are think order, zip to in people - of in orders some their now because an put looking

to be you we can. we're as a trying much can, as as we're in we're safe So larger you what transparent But contactless to it's and way. is we again, that to so happy get orders early as far giving seeing

John Ivankoe

on a unemployment make different being for would more sense at many us And the would a many sense and number of would to secondly that actually so have, have perspectives. never situation where then I they home that people cases. we than of economic as in working make make anticipated would amortize Yes, it well four fees some from of money different months delivery definitely will guess, lot

from I perspectives. this So wanted from here to ask two

that benefiting One, might weekly basis basically from state on influence influenced do maybe to then not be would that working? consumer benefits? or type a might if what unemployment it think from the a plus federal to be not if you are pickup has you seeing ability versus of them working the there consumer on a it your is their And offer kind of way secondly, economically to attract comment employees might appropriately, equivalent and of a perspective margin you that

Ritch Allison

John, Ritch. it's

and Yes, to benefits thus is pockets, to be suspect going of On choose which than others. probably money more was impact there would tell. you having the released of that terms into consumers' far. they stimulus question, just unemployment hard first or out in with I us part too really that the could early spend that the the just described with

to part we it second that to make the your around tried does hire question lean folks, bit. then of of And harder it a and

our in supply team couple also a members As for XX our we've our and we in mentioned stores of for earlier hourly store chain well. managers our and times business, weeks for corporate got bonuses as

us relatively other we've we've for what work is But done as recognize thank out that to and you we are to to to there alternatives you continuing in got crazy there that customers first their serve earn And as potentially loyalty our a to continue for them time. to say described. foremost also

want So actually in any, applicant lot flow benefits get of that make they've in months benefits, pullback I we've are a think I and unemployment and August looking as significant time. haven't very beyond seen of And September. job, The that there. got the that sure when into earlier, I folks even near-term increase a expiration mentioned they seen I point to a those with beyond those to think because

John Ivankoe

delivery metrics. just maybe Ritch maybe times the overall of and as quarter of a ago, couple sense, makes quarters we definitely delivery service and 'XX, It second talked about

in you not times apples-to-apples guys are to basis, an way just number on yourself? point terms this call, call the we different and things health of household old at metrics touched that you of on are just the accuracy of it fashioned but think I it the core delivery time a where but this to necessarily order measure the safety-related, used

Ritch Allison

Sure.

delivery John, proud lot our really a I've delivery business, minutes seen with started before, didn't on XX times, delivery under mentioned week from where of are there. averaging we've times time. some got we've that improvement particularly a out 'XX better I'm to to around as a lot but store there some of look 'XX every franchisees improvement corporate get So good see we yes, focus of and bit And

our really and across data hard can choppy in proof this gets business, days see The be of got and system. and a by against pretty across still these we like of And new them. we balanced driven here the are appropriately a franchisees there make patterns that are a delivery have lot working really across and with strong there every dayparts driver other of time. data, out our - points aspect So we've COVID-XX out the shifts fact sure our lot in to those figure that schedules lot of

continue and the tell does I making service. there So, because improvements focused on also a we We're not we're that can it forefront what not mean and to way bringing going - know to service those the times not do that be system that's to aggregators. safety is our very some we'll on critical we you are grow against is focused compete does the business

Operator

Thank you. And Jeffrey our from of Barclays. Bernstein next question comes

open. Your line is now

Jeffrey Bernstein

you of the the obviously is industry impact independents future. about talked prepared facing crisis Ritch, existential remarks the in and the the and your

independent seems have side would insights positive. it clearly each good ways In and of mom things many you comps more and are is franchisees. of your pop, but like a the solidly more So your into of

broadly be industry great. survival for years? survive that down of period on that ability or the thoughts restaurant extended and the open been to just talking how an significantly, within wondering ability supply-demand whether CEO, was imbalance it's for independents the I them survival have would independents' broader people you comps kind the about and with their whether would help thinking as think kind industry to of about a the doors Any pizza for keep more So

Ritch Allison

Yes that. here as struggling tough got Restaurant Jeff, were that are have business increased is I'll a crisis there country. this stay fairly the before and there labor significantly restaurants rates on brief a lot out business of across even

a particularly is came crisis. into but there not think a of I pain number strong so, now existential in, in it, the going And lot industry as right - now folks faced being of this independents with

as someone we independent who an industry hope able to independent someone in to an want has to restaurant been time a well. be as loves I the long a sure to to independents us to because We certainly So, the to Domino's to here go all I want restaurant. to - be restaurant able of for think be able out, go Pizza, to eat want survive go to and

Operator

And from Andrew our question Charles next Cowen. of comes

now line Your open. is

Andrew Charles

three Ritch, that to term of still for your XXXX XX,XXX three questions my to global understand the just outlook. of past But on the potential locations suspend upcoming and the target two leads long years? the for clear, developments of be next the table, been by continued kind to totally two to you you've development but the is on up year I have optimism fluidity just the the given Most made asked,

Ritch Allison

Yes, great very health growth strong came Absolutely, you target. and Andrew. brand growth around have optimism place of of still a ton question. for Thank still crisis asking The to have way the this in optimism but that with our work about our long-term store XX,XXX I Domino's I Pizza. going into We're a healthy this, through momentum.

Operator

Ritch Thank does over this I gentlemen, to conclude call turn closing the remarks. for like now session. you. Allison to And our any ladies would question-and-answer and back

Ritch Allison

this a the management have deal industry, you. incredibly our Pizza I, of it the brand. morning. Thank on leave an team of and in but and joining you is optimism Domino's It's could our everyone that with Thanks the call across franchisees if I this for thing future time around dynamic us our at and morning, great business one our

members franchisees spirit, that six things Domino's the I've hustle to Pizza had front-row incredible the passion of the incredible weeks One or innovative around of resiliency, a so world. team the is last and the the our the seat for

optimistic today never of great all brand. sit while more for I us, this So here a difficult time about

you So, July And XXXX with speaking and us. I results. we you as forward will Jeff look again with to in then our being appreciate quarter discuss second

Operator

Thank Ladies participating. this call. and conference for gentlemen, today's you concludes

You disconnect. may now