Domino's Pizza Inc. ascends following a surprisingly strong revenue performance in the fourth quarter, breaking the trend among fast-food chains. As the company announced on Monday, comparable U.S. sales increased by 2.8%, exceeding analysts' estimates for growth of 2.2%.
On Wall Street, stocks rose up to 9.6% on Monday, the largest increase since July. Domino's marketing campaign "Emergency Pizza" - a variation of the "Buy One, Get One Free" offer - has led to an increase in orders and sign-ups for the company's loyalty program, said CEO Russell Weiner during an analyst call on Monday.
Current growth initiatives include increased advertising efforts and programs to optimize operations. The chain has also completed the launch of a third-party ordering service with Uber Technologies Inc. in the US market. Domino's success stands in contrast to the results of other fast-food chains, such as Wendy's Co., which reported only modest sales growth in the US compared to expectations.
The Value of McDonald's Corp. in This Segment Was Slightly Below the Average Market Value. "The Exceeded Domestic Performance is Unique in the Q4 Earnings Season for Fast Food Restaurants, While Losses in the International Segment Are the Norm," Wrote the Analysts of TD Cowen Branch Around Andrew Charles in a Statement.
Domino's International Comparable Sales Growth of 0.1% Falls Short of Bloomberg-Captured Expectations of 3.2%. Weakness in Europe and Geopolitical Tensions in the Middle East Were the Main Causes for the Company's Slowdown Outside the US, According to CFO Sandeep Reddy in the Call with Analysts.