Domino’s Pizza has outperformed Wall Street expectations in its third-quarter results, riding a wave of value-driven promotions and new menu offerings as budget-conscious Americans search for affordable meal options amid stubborn inflation.
The world’s largest pizza chain reported a 5.2% increase in U.S. same-store sales, surpassing analysts’ forecasts of 4%, according to data from LSEG. Earnings per share climbed to $4.08, beating the estimated $3.97, while revenue rose 6.2% to $1.15 billion.
As inflation continues to squeeze household budgets, Domino’s has leaned into its reputation for value. In August, the company revived its “Best Deal Ever” promotion, offering any-topping pizzas for $9.99, and introduced new items such as parmesan-stuffed crust pizza to attract both loyal and new customers.
These efforts appear to have paid off. The company’s shares rose 2% in premarket trading after the earnings announcement. Domino’s also benefited from its delivery partnership with DoorDash, expanding access and convenience for online customers.
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Domino’s success comes at a time when fast-food competitors like McDonald’s and Burger King are ramping up discounts on select menu items to retain customers feeling the economic pinch. Similarly, consumer goods giants like PepsiCo have responded by introducing smaller, more affordable pack sizes for their products.
Domino’s has strengthened its rewards programme, offering deeper discounts and exclusive deals to build loyalty among diners who are increasingly prioritising price over brand.
While U.S. sales remain strong, international growth slowed to 1.7%, slightly below the projected 1.9%, due to softer demand in markets like Japan and Australia. Company executives also cited geopolitical tensions as a factor affecting performance in some regions.
Despite these headwinds, Domino’s continues to hold a firm grip on its home market, where consumer spending patterns are shifting toward value-orientated brands.
The company’s gross margin for U.S. company-owned stores fell 0.5 percentage points from a year ago, reflecting higher input costs, particularly for cheese and pork.
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However, analysts noted that Domino’s pricing strategies and steady order volumes helped offset these pressures.
With consumers dining out less frequently and searching for affordable indulgence, Domino’s has successfully positioned itself as a go-to option for value meals. Analysts expect this strategy to sustain growth into the next quarter, especially as the holiday season approaches.
As inflation persists and household budgets tighten, Domino’s message is clear: value still sells, and the pizza giant knows how to serve it hot.
Esther Ososanya is an investigative journalist with Pinnacle Daily, reporting across health, business, environment, metro, Fct and crime. Known for her bold, empathetic storytelling, she uncovers hidden truths, challenges broken systems, and gives voice to overlooked Nigerians. Her work drives national conversations and demands accountability one powerful story at a time.
