Domino’s Pizza Q4'24 Earnings: Growth Amidst Market Pressures
- Hardik Shah
- Feb 24
- 2 min read
TLDR
Market Share Gains: Despite economic headwinds, Domino’s increased U.S. QSR pizza market share by 1%.
Revenue & Profit Growth: Q4 revenue rose 2.9% YoY to $1.44B, and net income grew 7.7% to $169.4M.
Strategic Expansion: Strengthened aggregator partnerships, launched new products, and enhanced digital platforms.
Financial Results
Domino’s Pizza is the world’s largest pizza chain, operating 21,366 stores across 90+ markets. It focuses on value-driven promotions, digital ordering, and efficient supply chain management, primarily through franchising and carryout/delivery operations.
Domino's Pizza Earnings (QoQ)
Global Retail Sales: $5.94B (+4.4%)
U.S. Same-Store Sales Growth: +0.4%
International Same-Store Sales Growth: +2.7% (excluding currency impact)
Net Store Growth: +364 stores in Q4, totaling +775 for 2024
Total Revenue: $1.44B (+2.9%)
Net Income: $169.4M (+7.7%)
Diluted EPS: $4.89 (+9.2%)
Operating Profit Growth: 6.4% in Q4, 7.3% for 2024
Management Guidance for 2025
U.S. Same-Store Sales Target: +3% annually
Net Store Growth: 175+ new U.S. stores
International Sales Growth: 1%-2% before rebounding in 2026
Aggregator Marketplace Expansion: Potential $1B incremental sales opportunity
Capital Returns to Shareholders
15% Dividend Increase: Raised to $1.74 per share, reinforcing strong cash flow and commitment to shareholder returns.
Aggressive Share Buybacks: Repurchased 258,568 shares in Q4 ($112M) and 758,242 shares in 2024 ($327M).
Remaining Authorization: $814M still available for future buybacks.
Operational Performance
Consumer & Industry Trends
Macroeconomic Pressures: Domino’s navigated inflation and shifting consumer spending by reinforcing value-based promotions.
Delivery vs. Carryout: Delivery sales faced 1.4% decline, but carryout grew 3.2%, aligning with broader QSR trends.
Digital & Aggregators: Uber Eats partnership contributed 3% of sales, with further aggregator expansion planned.
Milestones & Key Successes
New Product Innovation: Introduced New York Style Pizza and Mac & Cheese Pasta, attracting new customers.
Digital Enhancements: Revamped e-commerce platform for better user experience, driving repeat orders.
Market Expansion: Achieved 31st consecutive year of international same-store sales growth.
Challenges & Risks
Competitive Pressures: Intense QSR discounting and price-sensitive consumers require sustainable pricing strategies.
Operational Costs: Supply chain costs rose, particularly in cheese pricing and food basket inflation.
International Headwinds: Store closures in Japan (DPE franchisee) will impact 2025 growth, but long-term expansion remains strong.
Strategic Initiatives
Value-Driven Promotions: “Best Deal Ever” ($9.99 large pizza) aims to boost customer retention.
Franchise Expansion: 60+ new franchisees added in 2024, with 120+ in pipeline.
Aggregator Growth: Extended exclusivity with Uber Eats until May 1, exploring other partnerships.
Tech & Operations: Upgraded DomOS system, deployed 1,600 DJ DO dough stretching machines to improve efficiency.
CEO Russell Weiner on strategy: “The best measure of a company’s success is market share gains. We believe our ‘Hungry for More’ strategy will continue to drive industry-leading results.”
The Bottom Line
Domino’s Pizza earnings show solid financial growth, successful value-based promotions, and digital expansion, despite macroeconomic challenges. With aggressive aggregator partnerships, product innovation, and franchise expansion, Domino’s is well-positioned to capture further market share in 2025.
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