Fast-food chains fare better in pandemic

FILE - This April 9, 2020 file photo shows a McDonald's sign in Wheeling, Ill.  McDonald’s saw stronger U.S. same-store sales in the July-September period, indicating customers’ preference for drive-thru and delivery remained strong even as lockdown restrictions eased.    (AP Photo/Nam Y. Huh, File)
FILE - This April 9, 2020 file photo shows a McDonald's sign in Wheeling, Ill. McDonald’s saw stronger U.S. same-store sales in the July-September period, indicating customers’ preference for drive-thru and delivery remained strong even as lockdown restrictions eased. (AP Photo/Nam Y. Huh, File)

Even with cities like New York relaxing rules for dining in, sales figures from chains like McDonald's and Domino's Pizza on Thursday suggest that most people continue to favor keeping their distance.

Comparable-store U.S. sales at McDonald's rose 4.6% in the three months ending in September, after a decline of 8.7% in the second quarter.

At Domino's the same figure, from U.S. stores open at least a year, jumped 17.5%, topping the 16% growth in the previous quarter.

In contrast, at overseas McDonald's locations, where drive-thru windows are less common, same-store sales dipped compared with a year ago. In McDonald's key European markets of France, U.K. and Germany, for example, just two-thirds of restaurants offer drive-thru.

Domino's said its same-store sales overseas climbed 6.2% as stores in hard-hit markets like India and Spain reopened and more business migrated to delivery.

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Nearly all U.S. McDonald's have drive-thru windows and its delivery business is rising. Domino's, a pioneer in the delivery business, has also introduced curbside delivery at nearly all U.S. stores.

Fast food chains have done much better throughout the pandemic compared with chains that rely on dining rooms almost exclusively.

Visits to full service, sit-down restaurants plummeted 48% in the second quarter year-over-year, compared with a decline of 17% in the same period for fast food chains, according to NPD Group, a data and consulting firm.

This week Ruby Tuesday, the restaurant chain known for its salad bar, filed for bankruptcy protection. California Pizza Kitchen filed for bankruptcy protection in July, while the parent company of the Chuck E. Cheese pizza and entertainment chain filed for bankruptcy in June. Steakhouse chain Sizzler also declared bankruptcy last month.

When combined with international sales, McDonald's same-store sales fell 2.2%. Still, that was significantly better than the second quarter, when same-store sales fell 24%.

McDonald's, based in Chicago, will release third-quarter earnings on Nov. 9.

Domino's, based in Ann Arbor, Mich., said quarterly sales rose 18% to $968 million, beating Wall Street projections. But its per-share earnings of $2.49 fell short, partly because of covid-related costs, including enhanced sick pay and compensation for workers.

Domino's shares fell 7% to $401.01 Thursday. McDonald's shares were fell 0.3% to close at $225.80.

FILE - In this July 15, 2019 file photo shows a Domino's location in Norwood, Mass. Domino’s Pizza saw stronger U.S. same-store sales in the July-September period, indicating customers’ preference for drive-thru and delivery remained strong even as lockdown restrictions eased.  Domino’s said its U.S. same-store sales jumped 17.5% in the July-September period, better than the 16% growth it saw in the second quarter.  (AP Photo/Steven Senne, File)
FILE - In this July 15, 2019 file photo shows a Domino's location in Norwood, Mass. Domino’s Pizza saw stronger U.S. same-store sales in the July-September period, indicating customers’ preference for drive-thru and delivery remained strong even as lockdown restrictions eased. Domino’s said its U.S. same-store sales jumped 17.5% in the July-September period, better than the 16% growth it saw in the second quarter. (AP Photo/Steven Senne, File)

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