DoorDash sees record orders and revenue in second quarter even as US restaurant traffic slows

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DoorDash set quarterly records for total orders and revenue despite slowing U.S. restaurant traffic

DoorDash said Thursday that it set records for orders and revenue in the second quarter, growth that came despite slowing U.S. restaurant traffic.

The San Francisco-based delivery company said its total orders rose 19% to 635 million in the April-June period. That was ahead of the 625 million Wall Street expected, according to analysts polled by FactSet.

DoorDash said revenue rose 23% to $2.6 billion, which also exceeded analysts’ forecast of $2.5 billion.

DoorDash shares jumped nearly 14% in after-hours trading.

U.S. restaurant demand has weakened in recent months as more inflation-weary consumers opt to cook at home. Circana, a market research firm, said restaurant traffic was down 2.6% in the first half of the year.

Earlier this week, McDonald's reported a 1% drop in same-store sales during the April-June period, the first decline since the end of 2020. Starbucks also said its quarterly revenue fell due to weak customer traffic.

But DoorDash has increasingly moved beyond delivering restaurant food and added a wider variety of stores to its service menu. In the second quarter, it partnered with Ulta Beauty and Lowe’s as well as Vallarta Supermarkets and other West Coast grocers. The company said it also delivered hundreds of thousands of flower bouquets for Mother's Day.

DoorDash narrowed its net loss to $158 million, or 38 cents per share. Analysts had forecast a per-share loss of 9 cents. The far higher figure may disappoint investors, who have shown some concern about the company's rising costs.

DoorDash said its marketing and development costs rose in the quarter, and it also booked expenses for office lease