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Domino’s leans on discounting as same-store sales grow 5.2%
Yahoo Finance· 2025-10-14 16:34
Core Insights - Domino's Pizza is effectively leveraging multiple value strategies to drive sales growth in a challenging macroeconomic environment, with the "Best Deal Ever" promotion being a significant contributor to U.S. sales growth for Q3 2025 [1][2]. Promotions and Sales Performance - The "Best Deal Ever" promotion, offering any pizza with any toppings for $9.99, was extended due to its popularity, resulting in a 5.2% increase in same-store sales and a 6.9% growth in revenue for the quarter [2]. - The company also reintroduced a $6.99 carryout special, which has been positively received by customers [2]. Operational Strategy - CEO Russell Weiner noted that the success of the "Best Deal Ever" promotion was driven by franchisee feedback, indicating its effectiveness in boosting business [3]. - The operational changes implemented through the "Hungry for More" strategy have enabled the execution of complex promotional deals that were not feasible in the past [3]. Delivery and Menu Innovation - The third quarter marked the first full period of Domino's complete DoorDash rollout, with expectations for sales growth on the platform as marketing awareness increases into Q4 2025 and 2026 [4]. - Menu innovation, including the introduction of Parmesan Stuffed Crust Pizza and new flavors of Bread Bites, has attracted new customers and improved the product mix [4]. Future Outlook - Domino's anticipates U.S. same-store sales growth of 3% for the year and 2% internationally, outpacing the broader quick-service restaurant (QSR) pizza segment despite ongoing macroeconomic challenges [5]. - The company expects to continue gaining market share against the QSR pizza industry, with plans for various initiatives to maintain its value proposition [6].