Domino’s Pizza CEO Russell Weiner provided insight into the company’s performance during a mixed first quarter, speaking with CNBC’s Jim Cramer. Despite reporting disappointing revenue and a decline in same-store sales, Weiner expressed optimism for the remainder of the year, emphasizing the company’s strong market share growth.
“In the short term, we had a quarter where we missed a little bit, but we won on market share,” Weiner said. “We’ve grown market share almost a point every year during my 16 years here.”
Domino’s posted lower-than-expected revenue and reported a drop in same-store sales for the first quarter. However, the company maintained its growth outlook for the rest of the year, citing its ability to navigate a challenging global macroeconomic environment. Despite the initial dip in shares following the earnings report, the stock rebounded by the end of the session, closing up by 0.63%.
Weiner noted that the first quarter was “probably the lightest quarter” in terms of major initiatives, but the company has new strategies in place to boost business, including the launch of stuffed crust pizza and a new partnership with DoorDash for delivery services.
While Domino’s had traditionally avoided participating in the aggregated delivery marketplace, Weiner explained that the company is now embracing the trend. “We need to meet customers where they are,” he said, highlighting that approximately $5 billion in pizza sales occur through such platforms, with Domino’s estimated to capture about $1 billion of that market. He pointed out that while Domino’s partnered with Uber Eats last year, DoorDash currently sells twice as many pizzas.
Addressing concerns about rising global tariffs, Weiner assured that Domino’s is unaffected from an ingredient supply standpoint. He acknowledged broader worries about a potential decline in consumer disposable income but emphasized that Domino’s is well-positioned to offer value through its strong supply chain and economies of scale, preventing significant price increases for franchisees and consumers.
“We have the ability during these tougher times to continue to build this competitive moat and offer long-term value to customers,” Weiner concluded. “This is really what we are built for.”
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