• US Retail Sales Growth: 5.3% in 2024.
• Same Store Sales Growth (Carryout): Over 6% for the year.
• Global Retail Sales Growth: 4.4% in Q4, 6% for the year, excluding foreign currency impact.
• US Same Store Sales: 0.4% in Q4, driven by carryout up 3.2% and delivery down 1.4%.
• US Franchisee Store Profitability: Approximately $162,000 in 2024.
• Net New Stores (US): 84 in Q4, total US store count at 7,014.
• International Same Store Sales Growth: 2.7% in Q4.
• Operating Profit Growth: 8% for the year.
• Dividend Increase: 15% announced.
• Share Repurchase: Approximately 259,000 shares repurchased for $112 million in Q4.

• Warning! GuruFocus has detected 2 Warning Sign with EDRY.

Release Date: February 24, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Domino's Pizza Inc (NASDAQ:DPZ) achieved a 5.3% growth in US retail sales in 2024, driven by positive order count growth and strong carryout business.
• The company successfully launched two new products, New York Style Pizza and Mac and Cheese Pasta, contributing to its innovation strategy.
• Domino's Pizza Inc (NASDAQ:DPZ) expanded its aggregator channel presence with Uber, achieving 3% of sales through this channel by year-end.
• The Domino's rewards program saw significant growth, with active members increasing by 2.5 million to 35.7 million users.
• Internationally, Domino's Pizza Inc (NASDAQ:DPZ) achieved 31 straight years of same-store sales growth, with strong performance in markets like India and Canada.

Negative Points

• Domino's Pizza Inc (NASDAQ:DPZ) faced macroeconomic and competitive pressures, impacting US in-store sales and franchisee profitability.
• The company's US delivery segment saw a decline of 1.4% in same-store sales, affected by pressures on low-income customers.
• International same-store sales growth expectations for 2025 remain conservative at 1% to 2%, reflecting ongoing macroeconomic challenges.
• The company missed its US unit growth target for 2024, partly due to hurricane-related disruptions.
• Domino's Pizza Inc (NASDAQ:DPZ) anticipates continued pressure on global retail sales and profit expectations due to store closures by its Australian master franchisee.

Q & A Highlights

Q: Can you elaborate on the 2025 guidance for US same-store sales, particularly regarding the impact of aggregators and loyalty programs? A: Sandeep Reddy, CFO, explained that the impact from aggregator platforms is expected to be more significant in the second half of the year. The company has several marketing initiatives planned, similar to those in 2024, which are expected to drive sales. Russell Weiner, CEO, emphasized that their strategy, "Hungry for MORE," will continue to guide these efforts.

Q: How do you view the international same-store sales growth for 2025, given the stronger-than-expected Q4 results? A: Russell Weiner, CEO, noted that while Q4 results were positive, they are cautious about making changes based on one quarter. The focus remains on ensuring price points are competitive, leveraging aggregators, and diversifying beyond delivery. Sandeep Reddy, CFO, added that the macroeconomic environment remains challenging, and their expectations have not shifted materially since the last call.

Q: What is your confidence level in achieving the 2025 US unit growth target, given the shortfall in 2024? A: Russell Weiner, CEO, acknowledged that hurricanes impacted net openings in 2024 but expressed confidence in their competitive position and store growth pipeline. Sandeep Reddy, CFO, highlighted that their store economics remain best in class, with strong demand for new units.

Q: How does Domino's plan to balance value promotions with potential new delivery partners in 2025? A: Russell Weiner, CEO, stated that while they are not confirming specific promotions, they aim for long-term ROI with new product launches. The company is focused on sustainable value offerings, and any new partnerships will be managed to ensure profitability and incremental growth.

Q: Can you discuss the impact of the new e-commerce platform rollout on consumer experience and business operations? A: Russell Weiner, CEO, explained that the new platform will enhance the consumer experience with improved food photography and user flows. It will also support better integration, personalization, and speed on the backend. The rollout will be gradual to ensure positive conversion rates.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.