The results: Domino’s three-part recipe for success—value, menu innovation, and expanded reach—powered its strongest US same-store sales growth in Q3 since Q1 2024.
Its Best Deal Ever online-only promotion—which offered any pizza with any toppings for $9.99—brought customers in, while new menu items such as Parmesan Stuffed Crust Pizza and Garlic and Cinnamon Bread Bites encouraged them to spend more. Meanwhile, partnerships with aggregators like DoorDash extended Domino’s reach to a broader audience.
The numbers:
- Domino’s US same-store sales rose 5.2% YoY.
- International same-store sales increased 1.7% (excluding foreign currency impact).
- Revenues climbed 6.2% to $1.15 billion, about $10 million above expectations, driven by higher supply chain volumes, increased franchise royalties, fees, and ad revenues, and a 3.3% rise in food basket pricing.
- Diluted earnings per share fell 2.6% to $4.08, which was ahead of the $3.95 consensus estimate.
- Carryout, delivery, and order count growth were positive.
Looking ahead: Domino’s reaffirmed its outlook for 3% US same-store sales growth and 1% to 2% international growth but warned that the QSR industry has felt macroeconomic headwinds strengthen as Q4 begins.
Our take: Fresh off its first brand refresh in 13 years, Domino’s is pulling the right growth levers in a tough market. Its expansion into aggregator platforms is a promising growth driver, said CEO Russell Weiner on the company’s earnings call. Domino’s delivers about one in three pizzas nationwide but holds a far smaller share on aggregators, a gap Weiner expects the company can close over time.
Still, no chain is immune to a slowdown if the labor market weakens or other macroeconomic pressures intensify; more than a third of consumers told McKinsey earlier this year they plan to cut back on indulgences like food delivery amid rising costs. For Domino’s, the key will be to convert new aggregator customers into loyal users.