Domino's Pizza outlines strategy behind first quarter success

ANN ARBOR, MI — Domino's Pizza said its “Hungry for MORE” strategy increased sales, store count and profits in the first quarter of 2024.

At the April 29 earnings conference, Domino's Pizza CEO Russell J. Weiner used the “MORE” pillars of the Hungry for MORE strategy to explain the company's first quarter results. I dug deeper.

The M in the first pillar stands for “tastiest food,” and according to Weiner, Dominos achieved this through product innovation and marketing.

“We know we have the best-tasting food in the industry, and we're focused on showcasing it with more appetizing food photography across all of our marketing and sales channels.” Weiner said. “We also ran a campaign highlighting Pan Pizza, a premium product that brought news to this cross-type for the first time since 2014.”

Weiner said Domino's Pizza has advanced the O pillar, which stands for “Operational Excellence,” through the rollout of new service programs.

“In this way, we deliver on our promise of providing the most delicious food by continuing to promote great experiences with our products,” Weiner said. “As we talked about in our last earnings call, we are rolling out a new service program in 2024. In the first quarter, we launched our first sprint, which we call our Product Training Sprint, More Tasty Operations, focusing on fabrics and rolling it out to all of our more than 6,800 stores in the United States. We continue to benefit from our service initiatives, and in the first quarter we actually delivered more pizzas than in the first quarter of last year due to improved delivery times.”

Regarding the R pillar, which stands for “Recognized Value,” Weiner discussed consumer-friendly discounts and the company's rewards program.

“I'd like to further explain what our famous values ​​mean to us at Domino's Pizza,” Weiner said. “It's not just about being the lowest price on the market, it's about delivering innovative and memorable value. Our renowned value beats the discounts you'll find on the market. Buy one, get one free Famous Value reinvented this mechanism and created Emergency Pizza, which has performed better than buy one, get one free in my career. and) was a meaningful driver for our comps in both the fourth and first quarters of 2023. And it not only increased orders, but also drove membership acquisition into our loyalty program. it was done.”

Finally, Weiner discussed the E-pillar, which stands for “best-in-class franchisee reinforcement.”

“We will welcome thousands of franchisees to our global gathering in May, where we will bring our Hungry for MORE strategy to life across our global system,” Weiner said. . “We can't wait to get together because our franchisees are what makes Domino's special. They were the inspiration for Hungry for MORE. ”

Weiner said first-quarter results show that the Hungry for MORE strategy is resonating with customers, and that Domino's Pizza is achieving its short- and long-term strategic goals and delivering “important results for shareholders.” He said he is confident that the company can “promote value creation.”

Domino's Pizza said its net income for the first quarter ended March 24 was $125.8 million, or $3.58 per common share, compared with $104.8 million, or $3.58 per common share, a year earlier. 20% increase from $2.93). Total revenue for the quarter was $1.08 billion, an increase of 5.9% from $1.02 billion in the same period last year.

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