Domino's Pizza beats sales forecasts as promotion increases pizza orders Written by: Reuters

(Reuters) – Domino's Pizza beat expectations for the first quarter on Monday, sending its stock up nearly 6% before the bell as U.S. consumers took advantage of offers through the pizza chain's loyalty program.

Domino's Pizza has managed to counter the downturn in dining out in the U.S. by drawing inflation-weary consumers to its pizzas and chicken wings with increased revenue from its loyalty program and fresh promotional offers.

U.S. same-store sales increased 5.6% in the quarter, beating LSEG's expectations for a 4.04% increase.

“Our growth in the U.S. was driven by two consecutive quarters of positive order numbers in both our takeout and delivery businesses. Additionally, this order growth was across all income groups,” said CEO Russell. Weiner said.

Lower food costs and higher franchisee fees also boosted margins in the quarter. First-quarter earnings were $3.58 per share, beating analysts' expectations of $3.39.

Last September, Domino's Pizza revamped its loyalty program and entered into a third-party delivery partnership with Uber (NYSE:) Eats, helping to revive demand for delivery after a period of stagnation.

Domino's Pizza said more than 3% of its sales are on track to end the year through the Uber Eats channel.

The company is also promoting promotions such as a 50% online discount for the week and a $3 coupon for customers who tip their delivery driver online for $3 or more.

“Consumers continue to respond favorably to Domino's value and convenience, and we believe the company can maintain its leadership position in the U.S. market,” said North Coast Research analyst Jim Sanderson. “There is,” he said.

Third Party Advertising. It is not an offer or recommendation by disclosure here or
remove ads

Domino's Pizza's total revenue for the first quarter was $1.09 billion, an increase of 5.9% year over year, compared to market expectations of $1.08 billion.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *