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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 struggling with a sales slowdown in early 2023, the
company has rolled out multiple initiatives in recent months
including promotions and offering more redeemable points to its
loyalty program users, helping it turn the tide and attract 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.
U.S. 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 estimated a per-share profit of $4.38.
(Reporting by Deborah Sophia and Annett Mary Manoj in Bengaluru;
Editing by Devika Syamnath)
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