Large two-topping carryout pizzas are $6.99 each from June 2-8ANN ARBOR, Mich., June 2, 2025 /PRNewswire/ -- Domino's Pizza Inc. (Nasdaq: DPZ) is kicking off June with a special deal: customers can carry out large two-topping pizzas for $6.99 each from June 2-8. Domino's customers can carry out large two-topping pizzas for $6.99 each from June 2-8. "Summer is unofficially here, and Domino's is celebrating by doing what we do best: offering delicious pizza at a great value," said Kate Trumbull, Domino's ...

Core Insights - Both Domino's Pizza, Inc. (DPZ) and Papa John's International, Inc. (PZZA) are significant players in the U.S. pizza market, benefiting from strategic partnerships and digital transformation [1][2] - The restaurant industry is experiencing growth due to higher menu pricing and average check growth, although challenges such as elevated labor costs and food inflation persist [3] Domino's Pizza (DPZ) - Domino's is a leading player in the U.S. quick-service restaurant industry, with strong international growth, particularly in China and India [4] - The partnership with DoorDash is expected to enhance revenues by expanding the customer base and tapping into a $1 billion opportunity in the aggregator marketplace [5] - The introduction of the Parmesan Stuffed Crust pizza represents a significant menu innovation aimed at attracting customers [6] - The revamped loyalty program has added 2.5 million active members, indicating potential for sustained growth [7] - The Zacks Consensus Estimate for Domino's 2025 sales and EPS implies year-over-year growth of 4.9% and 6.5%, respectively [11] - DPZ stock has gained 3.6% in the past six months, outperforming the industry and S&P 500 [13] - DPZ is trading at a forward price-to-earnings ratio of 26.2X, above its median of 25.47X [15] Papa John's (PZZA) - Papa John's focuses on its core product, pizza, and has implemented a barbell pricing strategy to drive orders, resulting in a 4% year-over-year increase in pizza orders [8] - The company operates 2,503 international locations and plans to open 180 to 200 new units in the full year [9] - The loyalty program overhaul aims to enhance engagement among its 37 million members, with plans for further personalization [10] - The Zacks Consensus Estimate for Papa John's 2025 sales implies a year-over-year increase of 2.1%, but EPS is expected to decrease by 23.9% [12] - PZZA shares have declined 12% in the past six months [13] - PZZA's forward earnings multiple is 21.64X, below its median of 18.75X [15] Conclusion - Domino's is currently better positioned than Papa John's, supported by stronger sales momentum, strategic growth initiatives, and positive investor sentiment [17] - Papa John's faces operational challenges and less favorable earnings revisions, impacting its competitive stance [19]

Core Insights - Domino's Pizza, despite a decline in U.S. same-store sales, is focusing on international growth and new delivery partnerships to drive future growth [2][3][14] - The company reported a 2.5% increase in overall revenue to $1.11 billion, with global retail sales climbing 4.7% to $4.46 billion [11] - Domino's plans to open 175 new locations in the U.S. this year and expects similar international store openings as in 2024 [9][14] Financial Performance - U.S. comparable-store sales fell by 0.5%, while company-owned restaurants saw a 2.9% decline [2] - Adjusted EPS increased by 21% to $4.33, surpassing the analyst consensus of $4.03 [13] - The company generated $179.1 million in operating cash flow and $164.4 million in free cash flow during the quarter [13] Growth Strategies - Domino's is expanding its delivery services through partnerships with DoorDash and Uber, expecting significant incremental sales from these collaborations [5][6][17] - The DoorDash partnership is anticipated to contribute to 50% of sales that would not have been captured otherwise, with a national launch planned for May [6][8] - The introduction of the new Parmesan stuffed crust pizza is expected to coincide with the DoorDash launch, enhancing product offerings [8] Market Outlook - The company forecasts U.S. same-store sales growth of around 3% and international growth between 1% and 2% for the upcoming year [14] - Domino's is optimistic about growth in the latter part of the year, driven by the DoorDash partnership, although macroeconomic conditions may pose challenges [14] - The stock is currently trading at a forward P/E ratio of just over 28, indicating a premium valuation typical for heavily franchised quick-service restaurant operators [15][18]

Core Insights - Domino's Pizza is facing challenges in 2025 but shows potential for growth through its "Hungry for MORE" strategy, with reaffirmed guidance indicating strength in the latter half of the year [3][9]. Financial Performance - Q1 net revenue reached $1.11 billion, reflecting a 2.5% increase driven by a 2.3% rise in global retail sales [10]. - U.S. comparable store sales decreased by 0.5%, but this was offset by a 3.7% increase in international sales on a foreign exchange neutral basis [10]. - System-wide comparable sales increased by 4.7% on an FX-neutral basis, indicating market share growth [11]. - GAAP earnings rose nearly 21% to $4.33, supported by a reduced share count [13]. Strategic Initiatives - The launch of the Parmesan Stuffed Crust Pizza is noted as the most successful in the company's history, expected to significantly boost delivery orders through a new partnership with DoorDash [4]. - Share buybacks totaled $50 million in Q1, reducing the share count by 1.6% year-over-year, with a remaining authorization of $764 million [14]. Analyst Sentiment - Analysts have mixed reactions, with a consensus price target of just over $515, reflecting a 3% increase from prior estimates [5]. - The high-end price forecast has been raised to $560/$565, suggesting potential for a new multi-year high [6]. - Institutional ownership stands at approximately 95%, providing a bullish outlook as institutions continue to buy shares [8]. Market Outlook - Despite headwinds such as foreign exchange conversion and a reduced store count, the company is expected to leverage its strengths in international markets [10]. - The macroeconomic outlook remains uncertain, which may influence short-seller behavior [9].

Financial Data and Key Metrics Changes - Income from operations increased by 1.4% in Q1, excluding foreign currency impact, primarily due to gross margin dollar growth within the supply chain and higher international franchise royalties and fees [16] - Global retail sales grew by 4.7% in Q1, driven by positive international comps and global net store growth compared to the previous year [17] - U.S. retail sales grew by 1.3%, primarily driven by net store growth, while same-store sales declined by 0.5% [17][18] - International retail sales grew by 8.2%, excluding foreign currency impact, with same-store sales at 3.7% [20] Business Line Data and Key Metrics Changes - The U.S. carryout business comps were up 1%, while delivery was down 1.5% in the quarter, indicating a shift in consumer preference [18] - The launch of the Parmesan Stuffed Crust Pizza is expected to drive future sales, although it had minimal impact in Q1 due to its late introduction [7][8] Market Data and Key Metrics Changes - The U.S. QSR pizza category was roughly flat to start the year, while Domino's outperformed with a 1.3% growth in retail sales [17][18] - International markets showed strength, particularly in Asia, driven by strong comps in India and Canada [20][21] Company Strategy and Development Direction - The "Hungry for More" strategy focuses on driving sales, store growth, and profits through innovation, operational excellence, and renowned value [5][6] - The company plans to launch at least two new products each year, with the Parmesan Stuffed Crust Pizza being a significant addition [6][7] - A partnership with DoorDash is expected to enhance delivery capabilities, with a national launch anticipated in May [11][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macro backdrop but expressed confidence in achieving market share gains [5][16] - The company expects U.S. same-store sales to be around 3% for the year, with potential macro pressures impacting this guidance [22][75] - International same-store sales growth is expected to be between 1% to 2%, considering geopolitical and macroeconomic pressures [22][114] Other Important Information - The company repurchased approximately 115,000 shares at an average price of $434, totaling $50 million in Q1 [21] - Organizational changes were made to streamline operations, which included the elevation of key executives [13][14] Q&A Session Summary Question: Impact of geopolitical pressures on international markets - Management noted that geopolitical volatility could impact demand, which is reflected in the guidance of 1% to 2% growth for the year [26][27] Question: Incrementality expectations from DoorDash - Management expects DoorDash to contribute approximately 50% incrementally to sales, with expectations of higher performance compared to Uber Eats [30][31] Question: Performance of the stuffed crust pizza - The stuffed crust pizza has received positive customer feedback, and while it did not significantly impact Q1, it is expected to drive future sales [34][35] Question: Domestic unit growth guidance - The company maintains its guidance of adding 175 net stores in 2025, with franchisee enthusiasm remaining strong [55][56] Question: Carryout customer performance - The carryout business experienced a slight deceleration, attributed to timing and calendar shifts rather than a decline in customer interest [101][102] Question: International unit growth outlook - Management expressed optimism about international unit growth reacceleration, particularly as closures from Domino's Pizza Enterprises are mostly behind [93][96]