Domino’s executives stated that value is crucial for growth in the quick-service restaurant (QSR) sector during a quarterly earnings call on October 10.
CEO Russell Weiner explained that the pizza chain has gained market share over the past year by providing “more for less” and implementing rewards programs that encourage customer loyalty.
“When we introduced our Hungry for MORE strategy in December, we anticipated that consumer spending would be under pressure in 2024. We believed that QSRs offering the best value would succeed,” Weiner said. He added that focusing on their strategic pillar of Renowned Value has been essential to their success in the U.S. this year.
Weiner noted that the demand for value will remain strong worldwide due to ongoing macroeconomic and geopolitical challenges. While competitors have also adjusted to meet this demand, Domino’s U.S. retail sales grew by 6.6% in the first three quarters of the year. In contrast, the overall QSR pizza market saw growth of less than 2%.
Since launching the Hungry for MORE strategy, Domino’s has experienced four consecutive quarters of same-store sales growth and an increase in profitable orders.
The company’s new rewards program, launched in September 2023, has also contributed to these positive results.
“Today’s order count growth leads to tomorrow’s growth because the strength of Domino’s rewards encourages members to return for future purchases,” Weiner said.
Looking ahead, Domino’s projects global retail sales growth of 6% for 2024, with similar growth expected in 2025, and a projected increase of 7% from 2026 to 2028, according to the earnings release.
To kick off the current quarter, Domino’s launched its MOREflation deal, which Weiner described as a way to show customers that “Domino’s is in their corner” by offering them more value. Next week, the company will introduce another promotion called Emergency Pizza, which offers a free pizza with qualifying orders.
“Looking to Q4, Domino’s will provide customers with what they want from their QSR brands: more,” Weiner concluded.
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