Domino’s Pizza (NASDAQ: DPZ) held its fourth-quarter 2024earnings callon February 24, 2025, revealing progress in its “Hungry for MORE” technique implementation and market share positive factors regardless of a difficult shopper surroundings. The decision highlighted administration’s deal with worth management, operational excellence, and strategic growth of supply channels.
Market Share Features Validate Worth-Centered Technique
In a pressured shopper spending surroundings, Domino’s strategic emphasis on worth is delivering outcomes. The corporate gained roughly 1 proportion level of quick-service restaurant (QSR) pizza market share in 2024, persevering with its long-term sample of market growth.
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We grew retail gross sales within the U.S. by 5.3% in 2024. Importantly, as one thing that continues to be distinctive within the business, we drove significant constructive order rely progress.
— Russell Weiner, CEO & Director
This progress comes regardless of important aggressive stress, demonstrating Domino’s means to keep up pricing self-discipline whereas driving visitors by way of worth initiatives.
Digital and Loyalty Program Present Robust Momentum
The corporate’s rewards program is displaying robust adoption and serving to drive repeat enterprise, notably amongst key goal segments. This system grew considerably in 2024, positioning Domino’s for continued buyer engagement and personalised advertising alternatives.
We grew our total energetic members considerably in 2024, ending the 12 months at 35.7 million customers, up roughly 2.5 million versus 2023. … This robust base of customers will enable us to interact extra clients and drive frequency with focused and personalised advertising efforts.
— Russell Weiner, CEO & Director
This digital basis, mixed with an upcoming e-commerce platform refresh in 2025, strengthens Domino’s means to drive sustained progress by way of enhanced buyer engagement.
Aggregator Technique Exhibiting Early Success
Domino’s partnership with Uber has validated the corporate’s strategic entry into third-party supply, with administration expressing confidence within the long-term alternative whereas sustaining disciplined execution.
We efficiently entered the aggregator house with our partnership with Uber, attaining our objective of exiting the 12 months at 3% of gross sales coming by way of this channel. … We consider that this channel represents an incremental gross sales alternative of $1 billion over time.
— Russell Weiner, CEO & Director
The corporate plans to develop its aggregator presence in 2025, with negotiations underway for extra partnerships and a significant affect anticipated within the second half of the 12 months.
Operational Excellence Driving Effectivity
Domino’s continues to put money into operational enhancements that improve each buyer expertise and retailer economics. The corporate has efficiently lowered supply occasions whereas implementing new applied sciences to enhance retailer operations.
Our common supply occasions decreased by 2 minutes during the last 2 years. … We have now rolled out 1,600 DJ dough stretching machines throughout the U.S., greater than a 50% enhance from the place we had been on the finish of Q3.
— Russell Weiner, CEO & Director
These operational enhancements are notably important as they assist each present efficiency and future progress capability, with the CEO noting that present order volumes stay under peak COVID-19 ranges regardless of enhanced operational capabilities.
Worldwide Enterprise Exhibits Indicators of Restoration
Whereas going through macroeconomic headwinds, Domino’s worldwide enterprise demonstrated enchancment within the fourth quarter, sustaining its spectacular 31-year streak of same-store gross sales progress and displaying success with market-specific worth initiatives.
Domino’s Worldwide confirmed robust enchancment within the fourth quarter. … Canada ran an Emergency Pizza promotion in This autumn, and that is been a robust visitors driver for them. In India, Jubilant has pushed gross sales by way of elevated supply orders after eliminating their supply charge.
— Russell Weiner, CEO & Director
Trying Forward
Administration initiatives world retail gross sales progress in 2025 to be usually in step with 2024 ranges, concentrating on U.S. same-store gross sales progress of three% pushed by traffic-building initiatives in aggregators and loyalty applications. The corporate expects so as to add 175-plus internet new shops within the U.S. and plans to keep up low single-digit pricing self-discipline regardless of inflationary pressures. Worldwide same-store gross sales are projected at 1% to 2% progress earlier than returning to extra normalized ranges in 2026.
The corporate’s strategic priorities for 2025 embody increasing aggregator partnerships with significant affect anticipated within the second half, rolling out a brand new e-commerce platform, launching no less than two new merchandise, and sustaining its value-driven strategy in what administration anticipates shall be one other difficult 12 months for the business.
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David Kretzmann has positions in Domino’s Pizza. The Motley Idiot has positions in and recommends Domino’s Pizza and Uber Applied sciences. The Motley Idiot has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially replicate these of Nasdaq, Inc.
