Domino's Growth Plan: 5 Key Updates for Investors

Core Insights - Domino's Pizza reported progress in its "Hungry for MORE" strategy, achieving market share gains despite a challenging consumer environment [1] - The company emphasized value leadership, operational excellence, and strategic expansion of delivery channels [1] Market Share Gains - Domino's gained approximately 1 percentage point of quick-service restaurant pizza market share in 2024, continuing its long-term market expansion [2] - Retail sales in the U.S. grew by 5.3% in 2024, with positive order count growth [2][3] Digital and Loyalty Program - The rewards program saw significant growth, ending 2024 with 35.7 million active members, an increase of approximately 2.5 million from 2023 [5] - This digital foundation, along with an upcoming e-commerce platform refresh in 2025, is expected to enhance customer engagement and drive sustained growth [5] Aggregator Strategy - The partnership with Uber has validated Domino's entry into third-party delivery, achieving 3% of sales through this channel by year-end [6] - The company sees this channel as an incremental sales opportunity of $1 billion over time and plans to expand its aggregator presence in 2025 [6][7] Operational Excellence - Domino's has invested in operational improvements, reducing average delivery times by 2 minutes over the last 2 years and rolling out 1,600 DJ dough stretching machines [8] - These improvements support current performance and future growth capacity, despite current order volumes being below peak COVID-19 levels [9] International Business - The international business showed improvement in Q4, maintaining a 31-year streak of same-store sales growth [10] - Specific initiatives in Canada and India have driven traffic and sales, demonstrating success in market-specific strategies [11] Future Outlook - Management projects global retail sales growth in 2025 to align with 2024 levels, targeting U.S. same-store sales growth of 3% [12] - Strategic priorities for 2025 include expanding aggregator partnerships, launching a new e-commerce platform, and maintaining a value-driven approach [12]