HBI Staff | Mumbai 
Domino’s Pizza exceeded Wall Street’s quarterly same-store sales expectations, fueled by the success of its revamped loyalty program and delivery collaboration with Uber Eats. The initiatives have evidently heightened consumer interest in their pizzas and chicken wings
Shares of the company were up nearly 6% in premarket trade, as it also raised its quarterly dividend by 25% to $1.51 per share and announced an additional $1 billion share buyback plan.
After facing a sales slowdown in early 2023, the company initiated several measures in recent months, such as promotions and increasing redeemable points for loyalty program users. These efforts have effectively reversed the trend, drawing in more consumers.
Improved staffing levels at its stores and more availability of delivery drivers have also helped it meet demand better.
The global pizza giant recorded higher customer transactions at its U.S. stores in the fourth quarter.
Domino’s entry into third-party delivery – through the national rollout of its partnership with Uber Eats – has helped the company capture new customers and quickly grow its market share.
It already held a 19% market share among pizza chains on the Uber Eats platform in December, according to research firm M Science.
US same-store sales at Domino’s rose 2.8% in the quarter, beating a 2.2% increase estimated by analysts, according to LSEG data.
Still, like other fast-food majors including McDonald’s and KFC-parent Yum Brands, which have taken a hit to overseas business amid the conflict in the Middle East, Domino’s international same-store sales growth of 0.1% lagged estimates of about 3%.
Higher wage rates and expenses tied to the loyalty revamp ate into Domino’s U.S. company-owned store-level margins, but lower food costs drove quarterly earnings per share to $4.48.
Analysts, on average, had projected a per-share profit of $4.38.
