U.S. same-store sales for Domino’s grew 3.6% during the first quarter of 2023, and the chain saw a net gain of 22 stores, according to its latest quarterly report.
Domino’s saw revenues climb by $13.2 million, or 1.3%, in the first quarter of 2023 compared to the same quarter in 2022. The increase was “primarily due to higher supply chain revenues attributable to increases in market basket pricing to stores,” the company said. The Q4 refranchising of 114 U.S. company-owned stores in Arizona and Utah also led to increased royalties and fees and franchise advertising. Domino’s also reported a higher average ticket per transaction due largely to increases in menu and national offer pricing.
The chain currently has a total of 6,708 stores nationwide.
In a statement, Domino’s CEO Russell Weiner said he’s “encouraged by the resilience of our business model and the competitive advantage our franchisees and team members bring to Domino’s Pizza.”
“We grew by doing what we said we were going to do: drive value and step up our pace of innovation,” Weiner added. “Our continued evolution from a U.S. delivery business to a global pizza company with strength in both delivery and carryout keeps me bullish on our future.”
The chain appears to be in the midst of a modest rebound after two consecutive quarters of same-store sales declines in 2022—3.6% in last year’s first quarter and 2.9% in the second quarter. The third quarter of 2022 brought some relief, as same-store sales increased by 2%, followed by a 0.9% increase in the fourth quarter.
This year’s first-quarter same-store sales beat Wall Street estimates, according to Reuters, thanks to higher prices and new promotional offers. As an example of the latter, the chain offered a 50% March Madness-related discount on all menu-priced pizzas from March 20-26. For the Super Bowl, Domino’s also introduced its new Loaded Tots in Philly Cheesesteak, Cheddar Bacon and Melty 3-Cheese flavors.
Known for decades as a pizza delivery leader, the company is now focusing more on carryout as demand for delivery wanes. Earlier this month, Domino’s unveiled new ordering options via its iOS app on Apple CarPlay—“Tap to Order” and “Call to Order”—both aimed at carryout customers looking to avoid long drive-thru lines.
