Domino’s Pizza (DPZ) Piper Sandler Growth Frontiers Conference summary

Domestic business performance and strategy

• Transaction growth in both delivery and carryout segments has been strong and is expected to continue in the second half of the year, despite a challenging consumer environment.

• Recent industry data shows competitors facing even more pressure, but internal plans remain unchanged.

• The MOREflation promotion, offering larger portions for the same price, aligns with the value strategy and responds to consumer concerns about shrinkflation.

• Loyalty program changes have driven significant increases in active accounts and redemptions, especially in carryout, supporting multi-year transaction growth.

• Both carryout and delivery are growing, with Uber Eats providing incremental opportunities and loyalty initiatives boosting carryout momentum.

Delivery, aggregators, and channel strategy

• Delivery transactions face some pressure due to macroeconomic factors, but retail sales in delivery are still growing.

• Aggregator platforms like Uber Eats have stabilized and are expected to be a growing channel; marketing strategies have adapted to platform-specific promotional styles.

• Marketing on Uber Eats required a shift to a high-low promotional approach, resulting in profit-neutral outcomes.

• Plans to join DoorDash and Grubhub after Uber Eats exclusivity ends are confirmed, with timing dependent on economic trade-offs and franchisee profitability.

• Decision to expand to other platforms will balance incremental growth opportunities with maintaining strong economics for franchisees.

Store development, profitability, and innovation

• On track to open the 7,000th domestic store and achieve at least $170,000 EBITDA per store for franchisees this year.

• Continued transaction growth is expected to drive further EBITDA growth beyond 2024, supported by a 50-50 supply chain profit-sharing model.

• Menu innovation includes successful launches of Pan Pizza and New York Style Pizza, with more new products planned.

• Operational complexity for new products like stuffed crust is being addressed through productivity improvements and technology, such as the dough stretcher and AI tools.

• Non-pizza platforms (breads, chicken, pastas, sandwiches) offer further innovation opportunities, as seen with recent launches like Loaded Tots and Stuffed Cheesy Bread.