Domino’s global results rose 4.3 per cent second quarter 2023

Dominos global quarter 2023
Russell Weiner, Domino’s Pizza Inc CEO. (Source: Supplied)

Global retail sales at Domino’s Pizzas Inc. rose 4.3 per cent in the second quarter of 2023, adjusted for foreign currency exchanges.

US same store sales barely lifted at 0.1 per cent growth during this period. However international same store sales (excluding foreign currency impact) grew 3.6 per cent.

Worldwide Domino’s grew its footprint by 197 stores overall – 27 of these in the domestic US market.

Russell Weiner, Domino’s CEO, said “We are executing our plan to restore delivery growth in the US. Our efforts to improve service and staffing while driving value and innovation will continue to make a difference in driving order counts in this important part of our business.

Domino’s results reveal lower order volumes

“We will also benefit globally from the deal we recently announced with Uber. Over two-thirds of our stores around the world will have the ability to take orders from Uber Eats. We are excited to strategically enter the multi-billion dollar aggregator marketplace as the number one pizza brand in the world.”

Revenues dropped US$40.6 million, or 3.8 per cent, in the second quarter of 2023 compared to the same period last year.

This was due primarily to the company’s decreased market basket pricing to stores, as well as lower order volumes.

US company-owned store revenues also declined after the refranchising of 114 stores in the fourth quarter of 2022 . However the decrease was partially offset by higher same store sales.

Higher global franchise revenues due to increased sales partially offset the revenue decline.

Results were lifted by an increase in US and international franchise royalties and fees, and the expansion of the retail footprint internationally.

Income from operations rose US$17.3 million, or 9.7 per cent, in the second quarter of 2023 as compared to the second quarter of 2022. Higher global retail sales growth was a major factor in this increase.