CEO Russell Weiner discusses results
Since the restaurant industry aims to attract frugal consumers with discounts and agreements, Domino’s pizza He thinks he can play Dinerers from his competitors.
“I think the industry winds are actually the tail wind for us. [market] CEO Russell Weiner told CNBC on Monday.
Domino’s reported 3.4% to the US sales growth of the same store on Monday and completed StreetCount estimates of an increase of 2%. The first filled shell pizza introduced in March increased sales, but Domino offers agreements. Managers said that Domino has grown in all income groups, including low -income customers, and broke the industrial trend.
“We can withstand value in what people want value,” Weiner said, Domino’s $ 9.99 “Best Agreement so far” promotion.
“The reason why it is the best agreement so far is to make a deal about something that you don’t want to you, something that you don’t want, something that may be your second choice.”
Fast-Food Restaurants, McDonald’s with Yum brands’ KFC has been introducing value menus and unified dishes for more than a year to fight stagnant traffic. Fast-Food chains typically exchange for cheaper dishes of consumers at the times of economic troubles, while the food faced with high inflation for years prefer to eat at home-or because they think it is really worth dollar.
Don’t look at the last success of Chili’s, which has published the same store growth with double digit in the last four quarters. After investing in his operations and menu, Chili’s introduced his food by comparing his pricing to Fast-Food competitors; Only a few dollars more, customers can get full food experience.
Weiner said he saw Domino parallel to his job.
“This is a systemic thing,” he said. “This will remain until you return to the point where people go back to the pricing. I think that’s why you see what you see in Chili’s, but that’s why you’ll see the positive things you see in Domino.”
Still, Domino has difficulties. If the prices are too high for Domino’s delivery customers, they will eat at home instead.
“We will lose an opportunity to eat at home, not a contestant,” Weiner said. He said.
The gains of the pizza chain have also missed Wall Street’s expectations and receives a fee of $ 27.4 million from the investment in the Chinese licensee. According to LSEG’s consensus forecasts, the company earned $ 3.81 per share compared to $ 3.95 estimates. Revenue welcomed Wall Street estimates $ 1.15 billion.
In the afternoon on Monday, the company’s shares fell more than 2%.
Domino’s competitors are not expected to share the second quarter results for several weeks. Yum Brands, owner of the Pizza Hut, will not declare his earnings until August 5th and then Pope John’s On August 7.
