Domino’s Pizza exceeded Wall Street predictions for U.S. same-store sales during the second quarter because their new menu items and promotional offers found success with price-conscious customers who faced ongoing economic uncertainty.
The sales performance at U.S. locations which have operated for at least one year reached 3.4% growth during the quarter ending June 15 exceeding the predicted 2.2% increase. The stock price experienced a 5% increase during the first part of Monday’s trading session.
The pizza chain gained popularity through its parmesan-stuffed crust and its continuous loyalty program promotions. The value-oriented approaches have succeeded in attracting customers who choose less expensive dining options because of rising inflation and economic instability caused by policies.
CEO Russell Weiner stated that delivery and carryout segments experienced growth which led Domino’s to increase its market share. The company received positive feedback from analysts because of its effective pricing approach and its strong online capabilities including its DoorDash partnership that doubled its third-party delivery sales.
The international same-store sales increased by 2.4% which exceeded market expectations. The company achieved a 4.3% increase in total revenue which reached $1.15 billion while matching analyst predictions. The company missed its quarterly profit target when earnings per share reached $3.81 instead of the predicted $3.95.
The higher supply costs at company-owned stores reduced gross margin by 2% because of ingredient price inflation.
Analysts maintain positive views about Domino’s because its pricing abilities and promotion efficiency create a strong competitive advantage within the quick-service market.
