No surprises here: Companies offering munchies, technology-based solutions big winners so far during COVID-19 pandemic
These days, many of us are relying on information technology aids to help us do our jobs and asking for food deliveries to cure our munchies.
Companies in those types of businesses — GrubHub, Domino’s and Papa John’s posted impressive earnings gains for the second quarter of 2020.
Other companies like Oklahoma-based ONE Gas and OGE Energy are holding their own.
Retailers and those in the recreational leisure sector? Not so much.
A report released recently on companies that are part of the S&P 400 Midcap Index by Embark backs up those observations.
“It’s not all doom and gloom,” the report concluded.
Index winners
• Grubhub, an online and mobile food-ordering and delivery marketplace, reported second-quarter 2020 revenues of $459 million, up 41% year-over-year and gross food sales of $2.3 billion, up 59%, year-over-year.
"Our singular focus for the second quarter was to support our restaurant partners as much as possible in their time of need. With a little help from increased demand, we are proud to announce we were able to spend approximately $100 million supporting and keeping restaurants, drivers and diners safe during these difficult times," said Matt Maloney, Grubhub’s founder and CEO.
• Domino’s was another company that benefited from increased consumer demands during the pandemic, with second quarter 2020 net income of $118.7 million, compared to $92.4 million the year before.
“Our focus as a global brand and the commitment of our local operators remains steadfast on serving our customers and our communities with a convenient, affordable and safe food and service experience,” said Ritch Allison, Domino’s CEO.
• Papa John’s posted a net income of $26.9 million for the second quarter of 2020, compared with about $8.4 million the year before.
“Our strong momentum has enabled us to hire over 20,000 new restaurant team members during the second quarter and target hiring another 10,000 positions in the third, helping support those impacted by unprecedented levels of unemployment,” said CEO Rob Lynch. “These efforts position Papa John’s solidly to continue meeting the needs of our customers who face continued challenges from COVID-19, and to drive long-term sustainable loyalty to our brand long after the current pandemic.”
Index losers
• Dillard’s reported a net loss for a 26 week period that ended Aug. 1 of $170.5 million, compared to a net income of $37.9 million for the same time frame in 2019.
• Marriott Vacations Worldwide posted a net loss of $70 million in the second quarter of 2020, compared to a net income of $49 million the same time a year ago.
• WPX Energy, a Tulsa-based energy company, posted a net loss of $414 million on revenues of $33 million for the quarter, compared to a net income of $305 million on revenues of $695 million the year before. Hedging-related losses related to oil and natural gas pricing heavily impacted its results. The company announced Monday it would be merging with Oklahoma City-based Devon Energy.
• Chesapeake Energy, based in Oklahoma City, entered into a bankruptcy...
To continue reading the rest of this article click here.