New York Drive-thru dominates even as dine-in restrictions ease

Even with cities like New York relaxing rules for dining in, sales figures from chains like McDonalds and Domi’s Pizza on Thursday suggest that most people continue to favor keeping ir distance.

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

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

Domi'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.

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

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

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

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

shift in consumer habits has been so drastic, NPD said it expects full-service restaurant chains to begin adding drive-thru windows and to beef up delivery even after pandemic ends.

When combined with international sales, McDonald's same-store sales fell 2.2%. Still, that was significantly better than second quarter, when same-store sales fell 24%. It also beat Wall Street’ expectations of a 4.7% decline, according to analysts polled by FactSet.

McDonald’s, based in Chicago, will release third-quarter earnings on v. 9.

Domi’s, based in Ann Arbor, Michigan, said that quarterly sales rose 18% to $968 million, beating Wall Street projections. But its per-share earnings of $2.49 fell short, partly due to COVID-related costs, including enhanced sick pay and compensation for workers.

Domi's shares fell 7% to $401.85 Thursday. McDonald's shares were flat at $224.36.

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