Domino’s Pizza fired up same-store sales in the first quarter of 2024, thanks to its Hungry for MORE strategy announced last year, according to CEO Russell Weiner.
The brand’s U.S. same-store sales rose 5.6% in the quarter, beating the London Stock Exchange Group’s estimate of a 4.04% increase. That comes on the heels of 2.8% growth in U.S. same-store sales in the fourth quarter of 2023, suggesting that Domino’s is in comeback mode after some struggles over the last several years.
“Our first quarter results demonstrated that our Hungry for MORE strategy is off to a strong start: delivering MORE sales, MORE stores, and MORE profits,” Weiner said in a press release.
Much of the credit goes to the chain’s loyalty program, Domino’s Rewards, which was revamped last year to offer more and better deals so members can earn points faster. Weiner said those deals “drove outsized comp performance, which flowed through to the bottom line with double-digit profit growth. Importantly, our growth in the U.S. came through positive order counts in both our carryout and delivery businesses for the second quarter in a row. Further, this order growth was across all income cohorts.”
Other changes in 2023 boosted Domino’s fortunes this year, including its relationship with third-party delivery platform Uber Eats. “We remain on track to exit the year at 3% or more of sales coming through this new channel,” Weiner said. “We are laser-focused on driving franchisee profitability and store growth, which will fuel the company’s ability to win and create meaningful long-term value for our shareholders.”
As of March 24, 2024, the brand now has 6,874 stores in the U.S., including 289 company-owned locations and 6,585 franchise stores. Worldwide, Domino’s boasts 20,755 locations.
Earlier this month, Domino’s also launched a new promotion that offers a $3 “tip” to customers who tip their delivery drivers. The offer can be redeemed on their next online delivery order and serves to alleviate so-called “tipping fatigue”—that is, consumers’ growing frustration with being prompted to tip restaurant workers, including counter-service employees who simply accept orders and payment instead of waiting on customers at the table.
In December 2023, Domino’s unveiled its Hungry for MORE plan, which is predicted to increase sales by $7 billion across five years, including $3 billion at its U.S. stores. The plan includes menu innovation—think new items like the Pepperoni Stuffed Cheesy Bread and Loaded Tots—and the DomOs platform designed to improve delivery efficiency and better loyalty rewards.