Retail Sales Growth: Global retail sales increased 7.3%, excluding the impact of foreign currency, driven by positive U.S. and international comps and global net store growth.
U.S. Retail Sales Growth: U.S. retail sales rose by 7.8%.
International Retail Sales Growth: Excluding the impact of foreign currency, international retail sales grew by 6.8%.
Same-Store Sales Growth: U.S. same-store sales saw a significant increase of 5.6%, with carryout and delivery sectors performing well.
Net Store Additions: 20 net new stores added in the U.S., 144 net stores added internationally.
Operating Income: Excluding the negative impact of foreign currency of $1.4 million, income from operations increased by 19.4% in Q1.
Future Guidance
Global Retail Sales Growth: Expecting 7% or more growth, excluding the impact of foreign currency.
U.S. Comp Sales: 2024 U.S. comps expected to be above 3% with anticipation of consistency across quarters.
Uber Sales Growth: Sales through UberEATS are anticipated to increase throughout the year, aiming to close the year with an overall sales mix of 3% or more.
International Comps: Expected to remain soft in H1 but accelerate to 3% or more guidance in H2.
Net Store Growth: Forecasting 1,100 or more net new stores, split between 175 in the U.S. and 925 internationally.
Operating Income: Predicting an 8% or more year-over-year increase, excluding the impact of foreign currency.
Trends, Market Conditions, Sentiment
Hungry for More Strategy: The earnings showcased the effectiveness of Domino’s “Hungry for More” strategy, focusing on product innovation, operational excellence, renowned value, and leveraging comprehensive franchisee support.
Loyalty Program Impact: The revamped loyalty program significantly contributed to U.S. comp performance, indicating its successful engagement with both new and existing customers.
Operational Excellence: Demonstrated through improved delivery times despite higher order volumes, indicating efficient operations and possibly easing labor constraints.
Promotional Environment: Noted an intensively promotional market, especially within third-party channels like UberEATS, with Domino’s adapting its marketing to remain competitive.
Price Adjustments: Mentioned adjustments in pricing to offset wage increases, particularly in response to legislative changes in California, showcasing a focus on safeguarding franchisee profitability.
Notable Quotes
”Our Q1 results demonstrated that our Hungry for more strategy is delivering on its promise, driving more sales, more stores and more profit.” - Russell Weiner
”We drove strong comp performance in the U.S. that flowed through to the bottom line with double-digit profit growth.” - Russell Weiner
”Our new 20 and 40-point redemption tiers are doing exactly what we hoped. They’re engaging more customers.” - Russell Weiner
”We remain on track to achieve our target of $170,000 average U.S. franchise store profit for 2024.” - Sandeep Reddy
”We’re solving for profit dollar growth. That’s what we are always solving for. And we are looking to protect that franchisee profitability in California and throughout the system.” - Sandeep Reddy
