With a focus on new marketing efforts and quicker delivery, Domino’s Pizza Inc. has seen its profit and same-store U.S. sales come out ahead of analysts’ forecasts. Established U.S. restaurant sales increased 3.4 percent in Q4, while analysts had forecasted a 2.3 percent hike, per IBES data from Refinitiv, Reuters reported.
Net income arrived at $3.12 per share, or $129.3 million, for the three months that concluded Dec. 29, an increase from $2.62 per share ($111.6 million) a year prior. The quick-service restaurant (QSR) firm earned $3.13 per share on an adjusted basis, which was 15 cents higher than forecast. Total revenue exceeded estimates of $1.13 billion., arriving at $1.15 billion.
"I am extremely proud of the accomplishments of our franchisees and our team members from around the world, not just in the fourth quarter, but throughout all of 2019," Domino's Chief Executive Officer Ritch Allison said in an announcement of the company’s fourth-quarter and fiscal 2019 financial results. "Our relentless focus on our customers, our franchisees and the long-term growth and profitability of the Domino's business model helped us deliver a solid 2019 in the face of unique competitive headwinds."
The pizza chain has been rolling out new products, opening new locations and providing quicker delivery to combat rivalry from mom-and-mom shops, competing pizzerias and third-party aggregators like Grubhub, Postmates and Uber Eats.
Over Cyber Monday week, Domino’s offered half off menu-priced pizzas for eCommerce orders. It also grew its GPS delivery tracking technology throughout its American stores over the quarter.
The restaurant chain had Q4 global net store growth of 492 locations, which was made up of 351 net new international stores and 141 net new U.S. stores. In fiscal 2019, the company opened 1,106 net new stores, made up of 856 net new international stores and 250 net new U.S. stores.