Takeaway food retailers have seen their sales skyrocket in the last few months as a result of lockdown measures which has prompted consumers to eat more pizza and other comfort food.
The pandemic has benefitted pizza makers like Papa John’s, which reported a 33.5% jump in sales during May for a total of two consecutive months of record-breaking sales for the company.
Meanwhile, Domino’s Pizza also reported a boost in its US sales amid the pandemic, with same-store sales surging by 14% during the same period.
Papa John’s chief executive Rob Lynch said: “We entered the pandemic with strong growth and momentum, and are fortunate that our delivery and carry-out model has enabled us to meet an essential need for high-quality food, safely delivered to consumers’ homes”.
Domino’s chief executive Ritch Allison (pictured), added: “We are seeing a tailwind as consumer behavior across the restaurant industry has shifted toward delivery and carryout, though we are not sure whether this trend will continue for the remainder of the second quarter.”
Domino’s stock closed yesterday’s session at $360.16, down 3.2%, while Papa John’s shares slide 4.5% as lockdown measures are eased in many countries, possibly reducing the fuel of this temporary trend.
Other stocks in the food industry have also seen a big jump in their value as a result of social distancing protocols and stay-at-home policies including Uber Technologies, which runs delivery service Uber Eats. Uber shares are up 16.3% so far this year as its delivery revenues took higher ground on the company’s income stream.
However, not all stocks in the fast-food sector have gained from the pandemic, since companies that traditionally rely on eat-in consumers – McDonald’s, Wendy’s, Dunkin Donuts – have seen their stock plummet and have not yet recovered from the losses they took after the February sell-off, despite an ongoing effort for reopening businesses in most countries around the world.