Feb 23 (Reuters) - Domino's Pizza beat Wall Street estimates for fourth-quarter U.S. same-store sales on Monday, as value-driven promotions and new menu items fueled demand, sending the pizza chain's shares up about 5% in early trading.
The pizza chain joined fast-food rivals such as burger giant McDonald's and Taco Bell-parent Yum Brands, which have also launched value meals to attract budget-conscious customers grappling with rising prices on daily essentials, including groceries and other food items.
Domino's is offering more promotions to attract customers, including the relaunch of its "Best Deal Ever" at $9.99, as well as introducing fresh flavors and new menu items, such as Parmesan-stuffed crust pizza.
Its quarterly U.S. same-store sales rose 3.7%, topping analysts' estimates of 3.47%, according to data compiled by LSEG.
The company said it now expects U.S. same-store sales to grow by 3% in fiscal 2026, similar to last year, with growth higher in the first half than in the second.
"Domino's continues to steal share in the U.S. pizza category," said Ari Felhandler, analyst at Morningstar.
The company is well-positioned to win consumers with its value menu, digital growth, and faster delivery, he added.
Domino's also gained from its partnership with online food-delivery firms such as DoorDash, which helped the pizza chain expand its reach.
CEO Russell Weiner said Domino's expects to meaningfully increase its market share within the U.S. quick-service restaurant pizza category this year.
Meanwhile, international same-store sales rose by 0.7%, missing estimates of a 1.03% increase due to tepid demand and stiff competition in regions such as Australia and Japan.
McDonald's and Yum Brands also posted upbeat quarterly sales, while high-end chains like Chipotle Mexican Grill, struggled with weak demand.
Domino's quarterly diluted earnings per share of $5.35 rose from $4.89 a year ago but missed estimates of $5.37.
Reporting by Anuja Bharat Mistry and Krisha Bhatt in Bengaluru; Editing by Leroy Leo
Source: Reuters