New menu items and rewards promotions help Domino’s gain market share amid economic uncertainty and inflation
Domino’s Pizza (DPZ) topped Wall Street expectations for U.S. same-store sales in the second quarter, sending shares up nearly 5% in premarket trading Monday. The world’s largest pizza chain saw increased demand from value-conscious consumers drawn to new menu items and promotional offers, despite macroeconomic uncertainty and pressure from inflation and trade tensions.
Same-store sales in the U.S. rose 3.4% for the quarter ended June 15, surpassing analyst estimates of 2.21%, according to LSEG. This marked Domino’s first quarterly sales beat in five quarters. Internationally, same-store sales rose 2.4%, also ahead of projections.
CEO Russell Weiner credited strong performance in both delivery and carryout segments, as well as meaningful market share gains. “In the U.S., both delivery and carry out grew,” he said, noting growth was driven by promotions like stuffed parmesan crust pizza and value deals tied to its rewards program.
Online sales also received a boost, thanks to its partnership with DoorDash. Analyst Matt Goodman of M Science noted Domino’s doubled its share of third-party delivery sales to around 5%.
Total revenue rose 4.3% to $1.15 billion, meeting estimates. However, the company reported earnings per share of $3.81, slightly below the expected $3.95. Rising ingredient costs led to a 2% drop in gross margin at U.S. company-owned stores.
As inflation and shifting trade policies under President Trump continue to challenge consumer spending, Domino’s has capitalized on its affordable pricing and digital strategy to appeal to budget-conscious diners, turning economic headwinds into an opportunity for growth.
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