Domino's Pizza (DPZ, Financial) experienced a notable increase, up 4%, following a significant beat in Q1 earnings per share (EPS). The company reported a 5.9% year-over-year revenue growth, reaching $1.08 billion, aligning with market expectations. The surge in stock value is attributed to impressive U.S. comparable store sales (comps) and optimistic remarks during the earnings call.
Key highlights from the report include:
- U.S. same-store comps rose by 5.6% in Q1, marking a positive trend from previous quarters.
- Both carryout and delivery segments saw positive order growth across all income levels, with notable increases among lower income cohorts.
- The recent Uber Eats partnership is proving fruitful, expected to contribute over 3% to sales by year-end, attracting predominantly higher-income customers.
- Domino's Emergency Pizza promotion and the loyalty program have significantly boosted U.S. comps, with the loyalty program driving increased carryout customer engagement.
- Looking forward, DPZ anticipates U.S. comps to consistently exceed 3% quarterly in 2024, fueled by the Uber Eats collaboration and loyalty program enhancements.
The first quarter of 2024 has set a positive tone for Domino's Pizza, underscored by remarkable U.S. comps and a robust EPS. The company's strategic partnerships and promotions, particularly with Uber Eats and through its loyalty program, are key drivers of this optimism. Domino's is poised for continued success in 2024, buoyed by these initiatives and the introduction of its New York Style Pizza.
