Updated February 26th, 2024 at 17:54 IST

Domino's Pizza exceeds quarterly sales forecasts with boosted demand

Following a period of sluggish sales in early 2023, Domino's initiated various strategic initiatives in recent months.

Reported by: Business Desk
Domino's Pizza quarterly sales | Image:Domino's Pizza
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Domino's Pizza quarterly sales: Domino's Pizza on Monday, February 26, outperformed analysts' expectations for quarterly same-store sales, signaling a robust bounce-back in demand. This surge in sales is attributed to the successful revamp of its loyalty program and its strategic delivery partnership with Uber Eats, which have collectively fueled consumer appetite for its pizzas and chicken wings.

Following a period of sluggish sales in early 2023, Domino's initiated various strategic initiatives in recent months. These included promotional campaigns and enhanced loyalty program offerings with more redeemable points, effectively reversing the downward trend and attracting a larger customer base.

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Furthermore, improved staffing levels at its outlets and enhanced availability of delivery drivers have bolstered Domino's capacity to meet escalating demand efficiently.

In the fourth quarter, the global pizza giant observed an uptick in customer transactions at its US stores. Domino's expansion into third-party delivery services, particularly through its nationwide collaboration with Uber Eats (UBER.N), has proven instrumental in attracting new customers and rapidly expanding its market share.

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By December, Domino's had already secured a noteworthy 19 per cent market share among pizza chains on the Uber Eats platform, as reported by research firm M Science.

In the US, Domino's reported a 2.8 per cent increase in same-store sales for the quarter, surpassing analysts' estimates of a 2.2 per cent rise, according to LSEG data.

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However, mirroring the challenges faced by other fast-food giants like McDonald's (MCD.N) and Yum Brands, Domino's experienced a more modest growth in international same-store sales, with a 0.1 per cent uptick falling short of the estimated 3 per cent.

While higher wage rates and expenses associated with the loyalty program overhaul exerted pressure on Domino's US company-owned store-level margins, the quarter's earnings per share reached $4.48, surpassing analysts' average projection of $4.38 per share.

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(With Reuters inputs.)

 

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Published February 26th, 2024 at 16:43 IST