Domino’s Pizza has just announced its first-quarter earnings, and they’re sizzling hot. The Ann Arbor-based pizza giant reported a 5.6% year-over-year surge in same-store sales (excluding new stores) for the quarter, surpassing analysts’ sales projections for the second consecutive quarter.
CEO Russell Weiner attributes this robust performance to the company’s revamped loyalty program and a focus on promotional offers rather than consistently low prices.
Last fall, Domino’s overhauled its loyalty program, attracting 2 million new members by year-end. Changes included halving the minimum spending threshold to earn rewards points from $10 to $5, offering more menu items for fewer points, and expanding redemption options for higher point values.
Weiner notes that these adjustments have already yielded positive results, attracting previously underserved customer segments such as carry-out customers and less frequent visitors to the chain.
“I anticipate the momentum from our loyalty program will persist for the foreseeable future,” Weiner commented during the earnings call.
The introduction of promotions, notably the “Emergency Pizza” buy-one-get-one-free offer, has also driven increased orders and boosted enrollment in the loyalty program.
Weiner highlighted the success of “Emergency Pizza,” stating it outperformed any previous buy-one-get-one-free promotions in his career.
Furthermore, Domino’s has seen a lift from its promotional efforts on Uber Eats, where it offers exclusive deals. Weiner emphasized that customers on the app respond more favorably to special offers than to regular prices.
“Our marketing strategies and offers are continuously refined to ensure effective engagement with this channel,” Weiner explained.
Following the strong first-quarter results, Domino’s stock surged as much as 8.2% from the previous close before moderating gains slightly. Year-to-date, the stock has climbed approximately 27%, and over the past six months, it has soared by 55%.
