Domino's Pizza Best Deal Ever at $9.99 helps DPZ share price jump, beat Wall Street estimates

Domino's Pizza beat Wall Street estimates for fourth-quarter U.S. same-store sales on Monday, as value-driven promotions and new menu items fueled demand, sending the pizza chain's shares up about 5 per cent in premarket ‌trading. Consumers, especially ⁠from lower-income ⁠households, are increasingly opting for home-cooked meals over eating out as they tighten budgets amid rising prices on daily essentials, such as groceries and other food items.

Domino's is ​offering more promotions to attract customers, including the relaunch of its "Best Deal Ever" at $9.99, as well as introducing fresh flavors and new menu ​items, such as Parmesan-stuffed crust pizza. In the ⁠fourth quarter, ‌U.S. same-store sales at Domino's rose 3.7 per cent, topping analysts' ​estimates of ​3.47 per cent, according to data compiled by LSEG.

"Domino's continues to ⁠steal share in the U.S. pizza category," said Ari ​Felhandler, analyst at Morningstar. The company is well-positioned to ​win consumers with its value menu, digital growth, and faster delivery, he added. Domino's also gained from its partnership with online food-delivery firms such as DoorDash, which helped the pizza chain expand its reach. CEO Russell Weiner said Domino's expects to meaningfully increase its market share within ‌the U.S. quick-service restaurant pizza category this year.


Meanwhile, international same-store sales rose by 0.7 per cent, missing estimates of a 1.03 per cent ​increase due ​to tepid demand ⁠and stiff competition in regions such as Australia and Japan.

Fast-food rivals such as burger giant McDonald's and Taco Bell-parent Yum Brands have also launched value meals, ​intensifying competition to attract budget-conscious customers amid weak global demand. Higher-end chains such as Chipotle Mexican Grill, on the other hand, saw sales decline. Domino's quarterly diluted earnings per share of $5.35 rose from $4.89 a year ago but missed estimates of $5.37.