Financial Performance - Domino's reported a mixed quarter with EPS miss but revenues in line [1] - US same store sales came in much better than expected, up 34% [1] Strategic Initiatives - Domino's introduced Parmesan stuffed crust pizza [2] - The company is seeing growth across income cohorts [2] - Domino's is doing well with value competition by discounting the pizza itself [3] - Domino's believes it offers the best deal by providing value on what customers actually want [3][4] - Domino's integrated with DoorDash as of May and expects it to be a tailwind in the back half of the year [5] - Aggregators have a higher income, younger customer base, while Domino's app has a lower income consumer, diversifying the customer base [5] Market Trends - Customers are turning away from fast food to casual dining for a more complete meal experience, even if it's more expensive [4] - Aggregators are here to stay, and Domino's is meeting consumers where they are [5]

Financial Data and Key Metrics Changes - Income from operations increased by 14.9% in Q2, excluding foreign currency impact, primarily due to higher US franchise royalties and fees, gross margin dollar growth within supply chain, and lower G&A expenses [15][17] - Global retail sales grew by 5.6% in Q2, with US retail sales increasing by 5.1%, driven by same-store sales and net store growth [17][19] - Same-store sales accelerated to 3.4% for the quarter, supported by the launch of Parmesan stuffed crust pizza [17][18] Business Line Data and Key Metrics Changes - Delivery business saw a positive growth of 1.5%, while carryout business grew by 5.8%, marking the highest average carryout orders in history [18][36] - The addition of Parmesan stuffed crust contributed to an average ticket increase of 1.4% due to its higher price point [18] Market Data and Key Metrics Changes - International retail sales grew by 6% in Q2, with same-store sales at 2.4%, driven by strong performance in Asia, particularly India, and the Americas [19][51] - The company added 30 net new stores in the US, bringing the total to 7,061 [18] Company Strategy and Development Direction - The company is focused on its "Hungry for More" strategy, emphasizing product innovation, value, and operational excellence to drive sales and market share [6][9] - The rollout of DoorDash is expected to significantly enhance sales in the second half of the year, with marketing efforts planned to increase awareness [11][35] - The company aims to maintain a strong franchisee network, with a focus on both large and small franchisees to ensure diverse operational strengths [92][96] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging macro environment but expressed confidence in sustaining growth, citing strong franchisee economics and a robust advertising budget [15][21] - The company expects US same-store sales growth to be around 3% for the year, with potential for higher growth in the second half due to ongoing initiatives [21][32] Other Important Information - The company repurchased approximately 316,000 shares for a total of $150 million in Q2, with $614 million remaining on its share repurchase authorization [20] - Management highlighted the importance of maintaining competitive pricing strategies to drive value for customers while ensuring franchisee profitability [102][104] Q&A Session Summary Question: Acceleration in same-store sales and sustainability of growth - Management discussed the historical performance and competitive advantages that support confidence in sustaining 3% plus same-store sales growth despite market challenges [24][30] Question: US sales outlook for the back half of the year - Management reiterated confidence in initiatives like DoorDash and loyalty programs to drive sales growth in the second half [32][36] Question: Market share gains in international markets - Management highlighted strong performance in India and Canada, attributing success to the "Hungry for More" strategy [50][54] Question: International unit development and long-term growth - Management expressed confidence in significant growth plans for India and China, with expectations for continued expansion [57][60] Question: Margins and pricing strategy - Management emphasized a focus on driving profit dollars for franchisees while maintaining competitive pricing below inflation [99][104]

Financial Data and Key Metrics Changes - Income from operations increased by 14.9% in Q2, excluding foreign currency impact, primarily due to higher US franchise royalties and fees, gross margin dollar growth within supply chain, and lower G&A expenses [15][16] - Global retail sales grew by 5.6% in Q2, with US retail sales increasing by 5.1%, driven by same-store sales and net store growth [16][18] - Same-store sales accelerated to 3.4% for the quarter, supported by the launch of Parmesan stuffed crust pizza, which drove positive transaction counts [16][17] Business Line Data and Key Metrics Changes - Delivery business saw a positive growth of 1.5%, while carryout business experienced a significant increase of 5.8%, marking the highest average carryout orders in history [17][35] - The addition of stuffed crust pizza contributed to an average ticket increase, benefiting from a 1.4% pricing adjustment [17][116] Market Data and Key Metrics Changes - International retail sales grew by 6%, excluding foreign currency impact, driven by net store growth of 148 and same-store sales growth of 2.4% [18][21] - Strength was noted in Asia, particularly in India, and in the Americas region, driven by Canada and Mexico [18][51] Company Strategy and Development Direction - The company is focused on its "Hungry for More" strategy, emphasizing product innovation, value, and operational excellence to drive sales and market share [5][6][8] - The rollout of DoorDash is expected to be a significant driver for US comp sales in the second half of the year, with marketing efforts planned to increase awareness [11][34] - The company aims to maintain a strong franchisee network, with a focus on both larger and smaller franchisees to ensure diverse economic strength [92][96] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging macro environment but expressed confidence in sustaining growth, citing strong franchisee economics and a robust advertising budget [15][19] - The company expects US comp sales to be around 3% for the year, with potential for higher growth in the second half due to ongoing initiatives [20][21] - International same-store sales growth is projected to be 1% to 2%, influenced by global macroeconomic uncertainties [21][66] Other Important Information - The company repurchased approximately 316,000 shares at an average price of $475, totaling $150 million in Q2, with $614 million remaining on the share repurchase authorization [19] - The launch of Parmesan stuffed crust pizza has been well-received, with customer feedback exceeding expectations, indicating a potential long-term market share catalyst [7][116] Q&A Session Summary Question: Concerns about sustaining 3% plus comp growth - Management highlighted the strength of their franchisee economics, supply chain pricing, and advertising budget as key factors that will help sustain growth beyond the current year [26][27] Question: Insights on US sales outlook for the second half - Management discussed ongoing initiatives like the "Best Deal Ever" promotion and the expected impact of DoorDash, indicating confidence in positive trends for both delivery and carryout [33][35] Question: Discussion on DoorDash as a growth vehicle - Management expressed optimism about DoorDash's potential, noting that it is expected to significantly contribute to sales growth in the coming years [39][43] Question: International market share gains - Management pointed to strong performance in India and Canada, emphasizing the successful adoption of the "Hungry for More" strategy across international markets [50][53] Question: International unit development and growth outlook - Management indicated confidence in significant growth in India and China, with plans for substantial store openings in those markets [58][60] Question: Insights on margins and pricing strategy - Management reiterated their commitment to driving profit dollars for franchisees while maintaining competitive pricing, which may be below inflation [102][105]

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]