Domino’s Pizza tops quarterly estimates as promotions drive U.S. sales
Domino’s Pizza reported stronger-than-expected third-quarter results on Tuesday, as new menu items and promotional offers helped boost demand among cost-conscious U.S. consumers.
The pizza chain’s U.S. same-store sales rose 5.2%, beating analysts’ forecasts of a 4.01% increase, according to data from LSEG. Earnings per share came in at $4.08, above the expected $3.97, while total revenue climbed 6.2% to $1.15 billion, slightly ahead of projections. Shares of Domino’s gained 3% in premarket trading, News.Az reports, citing Reuters.
To attract more customers amid inflationary pressure and tight household budgets, Domino’s brought back its “Best Deal Ever” promotion in late August, offering any-topping pizzas for $9.99. The company also launched new menu options such as the parmesan-stuffed-crust pizza, further appealing to value-driven diners.
Domino’s continued to benefit from its delivery partnership with DoorDash, which helped lift order volumes across the U.S. However, international same-store sales rose just 1.7%, below estimates of 1.91%, reflecting weaker demand in markets including Japan and Australia.
The company’s U.S. store gross margin slipped 0.5 percentage point from a year earlier, affected by higher costs for key ingredients like cheese and pork.
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