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IPFS News Link • Business/ Commerce

Dominos Reports There's No One to Deliver the Pizzas, Plus Mish Anecdotes

• Mish Shedlock

Shortage of the Day

The shortage of the day: There's No One to Deliver the Pizzas

Shares of Domino's Pizza Inc. initially fell Thursday morning after the largest pizza company in the world posted its first decline in U.S. same-store sales in more than a decade. These results came as a shock to analysts and investors, who were expecting continued growth while the pandemic supercharges demand for takeout and delivery meals. But demand may not be the problem. Rather, a dearth of delivery drivers — amid a national shortage of workers — could be what's eating into Domino's sales. (Shares later reversed course and erased their decline.)

It just so happens that mid-July marked the first of the monthly payments for the expanded child tax credit, a form of Covid-19 relief money that provides eligible families $300 for each child younger than 6 and $250 for older children. Rutherford suspects that with the child tax credit, some part-time Domino's drivers are working fewer hours.