Domino’s to Report Earnings and a Boost for Airlines
Domino’s
For most companies, it was easy to predict how the pandemic would impact business. For Domino’s, the picture isn’t so clear.
On one hand, food delivery became a much more valuable industry as consumers were forced to eat at home. This provided a significant boost to U.S. sales. However, many of Domino’s international sites were forced to close, which caused a 12.5% drop in revenue last quarter.
We will see what these competing forces mean for Domino’s bottom line when it reports earnings on Tuesday.
American Airlines
Things in the airline industry looked bleak when the main covid federal aid package expired last week. With current air travel at just a third of its 2019 level, many expected massive layoffs soon. However, the tide seems to be turning in Congress, and a new aid bill now appears to be right around the corner.
American, United and Southwest all climbed nearly 8% Friday after the positive news. The new aid bill, which has bipartisan support, will allow the airlines to keep many flights in place they may have otherwise had to cut. However, there is a significant amount of long-term uncertainty. If a vaccine is not approved for widespread use soon, one must wonder how long Congress will continue to write checks for the airline industry.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.
