Domino’s Pizza, with over 15,000 locations, reported U.S. same-store sales growth of 3.4%, surpassing estimates. The introduction of stuffed crust pizza and value deals attracted customers of all income levels. CEO Russell Weiner believes the industry challenges are an opportunity for Domino’s to gain market share.
Fast-food chains like McDonald’s and KFC have been promoting value menus to combat sluggish traffic. Customers are choosing to eat at home or spend on value items during times of high inflation. Chili’s success, with double-digit sales growth, shows that customers are willing to pay slightly more for a dine-in experience.
Domino’s faces challenges as higher prices may lead delivery customers to opt for eating at home. Despite missing earnings expectations due to a charge from its China investment, Domino’s revenue met estimates. Shares fell over 2% in trading. Rivals like Pizza Hut and Papa John’s will report earnings in August.
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