Business
Domino's: US Sales Surge Across All Income Groups
Domino's Pizza's U.S. franchise sales surpassed expectations in the first quarter, a glimmer of hope for the turnaround.
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Domino's Pizza Inc. reported a surprisingly strong growth in comparable store sales in the USA for the first quarter, which is seen as a positive sign for the company's continued recovery. The American pizza chain was able to record a sales increase of 5.6% in the period up to March 24, thereby significantly exceeding analysts' expectations of 3.9%.
This result is remarkable as it was achieved "despite the challenging spending behavior of restaurant customers with lower incomes," according to TD Cowen analysts led by Andrew Charles. The success is attributed to positive order numbers in both takeaway and delivery services, which increased for the second consecutive quarter, explained CEO Russell Weiner. Weiner emphasized that orders were generated from customers "across all income levels."
In addition to targeted advertising measures and programs to increase operational efficiency, the company's revised loyalty program was also mentioned as an important revenue driver. Domino’s is based in Ann Arbor, Michigan, and appears to have found a successful strategy for increasing revenue with these initiatives.
Domino's Shares Rose by 4% and Were Trading at 9:46 AM in New York. Since the beginning of the year up to April 26, the stock has already gained 21%, significantly outperforming the 6.9% increase of the S&P 500 Index. This marks the second consecutive quarter in which Domino's has exceeded analysts' expectations regarding domestic comparable store sales, bolstering confidence in the company's continued positive development.