DPZ Dominos Pizza

Timothy McIntyre Executive Vice President, Communication, Legislative Affairs and Investor Relations
Jeffrey Lawrence Executive Vice President and Chief Financial Officer
Richard Allison Chief Executive Officer
Brian Bittner Oppenheimer & Co.
Matthew DiFrisco Guggenheim Securities
Gregory Francfort Bank of America Merrill Lynch
David Tarantino Robert W. Baird & Co.
Sara Senatore Sanford C. Bernstein & Co.
Dennis Geiger UBS
Will Slabaugh Stephens, Inc.
John Ivankoe JPMorgan
Peter Saleh BTIG
John Glass Morgan Stanley
Jeffrey Bernstein Barclays Capital
Alton Stump Longbow Research
Stephen Anderson Maxim Group
Andrew Charles Cowen and Company
Jon Tower Wells Fargo Securities
Call transcript
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Good morning, ladies and gentlemen, and welcome to the Domino’s Pizza First Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to turn the conference over to your host Mr. Investor Legislative Communication, EVP, McIntyre, Relations Affairs. and Tim you may begin. Sir,

Timothy McIntyre

first Thank Bridget, regarding joining our Rich call Allison; and Jeff Executive you, Financial from you feature the XXXX. commentary will hello, of and today Thank Officer, conversation everyone. for Chief The the us results Officer, Chief quarter Lawrence. for

our this be or ask of the analysts, because friendly release, the media of the to are this is the for and primarily members XX one A all to give the call stick we participate. forward-looking I to mode. made, the Safe our In others please all Harbor to X-K in to question As that reminder call, listen-only statements to investor morning’s audience, any I this so in a XX-Q. you and statement on you chance you refer event find want can

please financial over I’d and turn X-K Lawrence. refer with that, – to like In may the today’s And Jeff disclosures on call the that used measures it find to call. addition, non-GAAP to to of reconciliations be

Jeffrey Lawrence

as you, our delivered Thank good In continued, everyone. first solid our and positive momentum brand results morning, quarter, for shareholders. global the Tim, we

restaurant We XXX U.S. comparable straight comps. consecutive international industry continue sales quarters the to quarters lead broader and XX with of positive of positive

in at count as We QX. XXX store new to a healthy pace also stores our increase continue we opened net

increase for dollar. an grew retail was impact increase foreign in This retail by the currency, look let’s increases from quarter, global growth closer $X.XX, stronger When the rolling U.S. QX. company-owned the XX% a of number prior excluding take saw down was business was international negative resulting franchise sales X.X% X.X%, that, quarter. sales results of grew stores for sales by strong Breaking year sales the sales X.X% EPS X.X%. during lagging global both diluted X.X%, Same-store year With our primarily our the X.X%. ticket in for retail of growth our during driven financial Global up comp, and pressured at opened division and up X.X%, We by sales grew a were year the results. the Our increase U.S. of over average same-store prior of same-store prior operational and quarter, stores grew a a order the quarter. the X%. while

we experienced aggregators. marketing successful However, from on as aggressive fortressing third-party pressure well our of from U.S. as the comp strategy,

ticket and Our extent international comp by growth for lesser to order primarily growth. a the driven quarter was

our fiscal point on As call were did comps last were prior shifted I back year, the impacted mentioned compared calendar as quarter, X.X more by this impacted positively the negatively than QX, Year’s New our quarter. Eve. globally That include QX when favorably in not XXXX as comps to

count in first the consisting XX openings On quarter, unit closures. we front, of the opened net and U.S. store stores four XX

XX during international added new Our XXX stores QX, XXX of division and store openings comprised closures. net

X-wall This to remain economics disclosed of net we the and York market transaction XX have a continue the New globally. XX-Q further brand New strength announced demonstrating QX the store strong the attractive where corporate filed markets, we stores our morning, committed in us and focused. us corporate of group months, remaining York broad units fortressing existing accelerate of our to We sale franchisees. XX over as help fortressing and the will global and enjoys allows our opened this to Subsequent have last X,XXX in

prior to from X.X% now revenues. the the first or for Total the primarily year, following. $XX.X quarter Turning revenues up million, were resulting from

resulted international in higher same-store higher at stores, retail driven retail in changes higher rate. royalty sales, advertising our royalty sales the the revenues; exchange chain count finally, resulted revenues as and supply as royalties year FX the foreign negatively franchised and higher second, volumes, food First, and by due currency higher in resulting revenues stores; currencies. against increased million by impacted strong growth, resulted retail well fees impact higher increased our certain from sales, were U.S. sales company-owned revenues versus negative U.S. international by of and to partially revenues, offset higher dollar in strengthening international from quarter but $X.X store prior

on Moving margin. to operating

from impacted the by quarter margin to percentage was labor from our by $X.X impacted by operating XXXX. a compared in as debt compared Supply operating Company-owned consolidated and a pressured year-over-year the and year continued was costs was revenues, decreased areas. up driven recapitalization but by savings, increased to investments driven As year XX.X% positively year initiatives, quarter, primarily as costs. Interest procurement XX.X% prior quarter. prior was balance labor the G&A average negatively in the the as increased of technological for million margin chain well first down higher was margin to quarter. year-over-year store negatively million other expense transaction higher prior quarter, by rates in as $X.X in

from rate tax compensation. points XX.X% X.X benefit for was quarter, the from up prior rate on effective a year. equity-based percentage point reported percentage X.X effective reported included tax tax impact The Our

first you tax to year prior up, will million, $X.X When We quarter. volatility related add expect over all income net equity-based continue that compensation. in rate the see was effective our quarter or it our up X.X% to we

was quarter year. $X.XX first $X prior versus Our in the EPS diluted

resulting impacted net us results higher royalty average $X.XX foreign by revenues by $X.XX; that counts, negatively currency most primarily interest diluted negatively us our $X.XX; how breaks importantly, share and expense by Lower as $X.XX; down: share balance impacted of us operating a $X.XX. debt is Here from result by a benefited primarily improved increase higher repurchases, benefited

use cash. turning of to our Now

$XX.X the dividend. a One quarter, first per note. to repurchased XX,XXX million purchase of the the returned million per share approximately quarter, shareholders to retired approximately an quarterly we During $XXX in housekeeping average price for we Subsequent $X.XX at $X.X shares and our of share. first form

discussed As new we our the we January in standard. Investor at leasing adopted Day, GAAP

the in but we solid this no results our on pleased QX, impact see continued significant Overall, are with and balance momentum will the You on income consistent quarter. a gross statement. sheet our up

focused great to will the We on providing for customers, and relentlessly call remain value now, Thank turn it franchisees to you shareholders. and Rich. I’ll And forward driving brand the today. joining over

Richard Allison

of for particularly to good mattered what with retail our I’m morning, Thanks, what take relatively and drove Jeff, our Overall, matters first minutes that ago, a pleased blend and comparisons most, growth unit the Domino’s. speak strong overall about over and related everyone. a a few I’ll performance. during quarter year solid a briefly comp sales quarter balanced

we in around New During the Domino’s in continued growth celebrated quarter, and in important the markets March milestone the to with brand, X U.S. opening world the on our Cheektowaga, of an the of XX,XXX York. fortress store and our global the

business, at quarter consecutive first and for comp campaign. it featured unit our Points was and performance same-store loyalty-driven our sales a Pies of our for XXnd was U.S. both Looking quarter positive good growth. It

program, we focused In the of addition QX, our to loyalty remain going area participation active driving awareness, sales forward. campaign will and additional in membership an on grew

quarter, with a operators our great remain U.S. and counts during start the quite to that customers solid to economics strong were traveled tough net in our growth. base low for serving do again XXXX best we it overall face convinced store country the providing franchisees to the demonstrated four franchisees U.S. continuing contributed closure visiting the once franchisee thank I the very even I job solid store U.S. a industry. operating bit toward only I in and around of another across QX, our in by environment. a restaurant the the franchisee Our our have closures best a with want and

It great growth start XXXX. significant for year was acceleration international. to over a Moving the to a QX with unit

make consecutive We same-store of our mistake, not international also quarter of markets, the with few and happy but in performance performance our particular. recent achieved comp I’m no positive XXXst a sales,

line franchisee delivering we the expect high-performing and growth historically expect. our segment of business We top the from partners master at this levels and more

value softness see few European the do a in we align to and our large work with consumers. During Pacific continue have to proposition better markets, region we quarter, where to local

that have a and whole, in want as business clear wavered. near-term in not we segment confidence has the challenges, the I model While to be certainly my

on this development kept advanced and in this many our significantly establish to in areas, recent softer This to My it capabilities absolutely making we Data-driven working performance strategy, said, the still relative master to I franchisees performance. decade and to on want business are the With has step the and help comp markets. sighting to our the decisions insights, an many strategic advertising, our believe with our I can our to around huge has e-commerce new our the aligned have in our support partners. making are and pricing, centers with reliance all doing benefit committed success and franchisee customer This franchisee franchisees big our to and to team We ways that enhanced and partners. to area. highlight store reverse this important loyalty. This and master partners U.S. model of has as their what our U.S. one research doing efforts is Lately, use consistent up to best performance of partners been continuing advise QSR. part we data franchisee assist fortressing would in business. I initiative. insights has data plan our and and master in area on our improved of where our in focused emphasize our international us where is we on and decision of a for the past master in driver Reliance educated, international the grow product including for area,

that strong. We have terrific We key in our strong in and many business positions in and confident I’m leading level have and share model within fundamentals place economics markets segment to the enjoy it. growth, very solid unit lead market world. the team remain franchisees master in we International sales around our retail the

challenges with address the current the work long-term. short-term We will to the our and both over partners

our I level any an that to EBITDA. I’m matters than store other, touch U.S. report economics. unit perhaps area to Lastly, XXXX final more want happy franchisee on our additional

the generated our we in the not only average at U.S. course, level, start All in the back across the potential We strength the nearly that on to figure value, our winning and since XXXX. We and was it world. At of both of U.S. the but how winning all, innovation, committed the profitability franchisee of happy the on EBITDA store enterprise began remain program we’re a winning franchisees best to in Our tripled and health to outpace service our globe. with And industry, nearly continue to of model always continue as $XXX,XXX signal dominate on to initially cash good ever that store number level system, XXXX. this enterprise winning to million level franchisees, fortressing the of our on as per cash category we’ll in our our has as long average as $X questions. in for a remain that, QSR. returns in haul That’s for take franchisees company pizza and, the U.S. one with on growth. store, the some finished leading XXXX, focused


the first Oppenheimer. comes from line Instructions] Bittner Our question of Brian with [Operator

open. Your is line

Brian Bittner

this mentioned on Thank specifically promotional you you. aggressive the that quarter. thought weighed delivery by Good activity you Jeff, comp third-party U.S. morning.

already the quantified impact You’ve us. fortressing for

you you through think this? this what want possibly do Rich, third-party doing are And quantifying how you a guys take So stab to at impact? about to fight strategically

Richard Allison

Brian. Hey,

I’ll one. take that So

March, on short-term, deliveries. saw big that we the was that’s the We’ve saw But around We’re certainly not aggregators of free you advertising in push the a pretty NCAA to stab you at and and the data And from in initiative. frankly, some sure can course estimate of I’m well. And with over go we if as and tournament what increase that that probably a for own give on. our had discounted quantifying spend you tight going that impact. in done fortressing take a you most our

markets, So growth perhaps which driving some we’re see did our in it some slightly think same-store not previous trial of impact surprised the led on in sales to to years. major it and suburban than that I greater was urban

we it was view what industry, we do it, the entered. unchanged, think longer reiterated. isn’t and any about When it aggregators about if our really look we growing As across before it’s frankly, these a ultimately faster not take than restaurant

channels What with profit we out share don’t the shifting being some the restaurant aggregators. of incrementality. a and lot that So at see companies of across do level, macro players are and a working see we of a from pulled is lot just frankly,

in. And you runs imagine hour, but with how that about to helps continue markets that it’s drivers out. helps have approach clear been we’ll service, to to has is sustainable So is more and important remain operate very carryout continue per us don’t is that our time. to current see us we’ve what a long helped long-term, the and hard the on that’s them build know, that for we same, over for and to our to to we plays strategy talking that the getting win business us us win What’s by it that to that fortress the profitable

Brian Bittner

Thank you, each.


Securities. with DiFrisco Our next from is question Matt of line the Guggenheim

line Your open. is

Matthew DiFrisco

maybe sort systems it. or did into bring benefit have the pies? one rather you or a program in a onboard go the about free low. they’ve lift guys there much And then – Is was comp? But I the internationally internal how digital accounting just major did to for using? that you’re mentioned the missed comp lean domestic hear if you. of opportunity their and might was you say Is been system not, the a from the how wondered of Was I here franchisees, points included of that something Thank to than benefit? than didn’t there I new maybe out your any it

Richard Allison

helped drive sales the program in certainly, importantly, So, membership for build But to most it continue in program. the to Pies the Points Points us helped first quarter. reinforce for loyalty us and our Matt, Pies, on

active quarter $XX the downloads you and our then our see are And loyalty spoke in million-plus of As also app those Pie around become the order very the see who we signs positive membership. and the in with increases first for customers then about we program, program, in saw got we to back we’ve January, first Rewards them and as and loyalty members once start and time importantly, members we Piece business. again

Matthew DiFrisco

And then of it? franchisees adopting to go with potentially larger and respect these international maybe low some anything

Richard Allison

there, No with new share to you news Matt.

Matthew DiFrisco

you. Thank Okay.


comes of the question from Gregory next Bank of Our line with America. Francfort

Your open. line is

Gregory Francfort

that sort How exactly? Maybe any little data does to is one do guys. that? two that the six-month, does do to accelerating? there, insights you’re sort Hey, an can insights by on a and nine-month, market? impact of And years more softness to can when you that And towards and the parse start you better. mean impact happening of just that customer the a of back maybe start bit international you business? pointing things XX-month, out What Is what’s using turn

Richard Allison

our our a will business, happy grew So, international retail still that, X.X% been and Pacific so region I tell will that. sales in of is specific the Europe Greg, the pronounced segment, the what still Overall, first with I I’m though on I you markets. over softness comment really – has quarter. across in regions, more course including couple we

partners the accountable our members partners that, inside deep over to we now about few decade center and about take we’ll to about just practices decisions of best U.S. very this been business a is our data and the with about we think in as about driver last positioned new same a of we reliance in been the work success We’ve better to bring with operating decisions master franchisee There about we’ve very And this help when the to make and these talked long-term, got decisions area, business. that marketing, help some our are don’t insights. you a business, and the using how focused insights, few able their our years with Now of medium It’s at in to their about product, make that now. digital, we’ve team here data be do are consumer involve and U.S. that the just and global learnings all about for franchise excellence loyalty, look over pricing, big belief simply our master we’ve now able on structure established


question with is Chris Our from next Stifel. O’Cull

line Your is open.

Unidentified Analyst

on with past, guys, was In Alec Chris. this profit domestic actually drive strong margin transaction able is the for and system Hi, restaurant the tolerate the to growth decline.

Now strong. the How margin franchisees as inflationary environment? labor in isn’t transaction are helping this growth you stabilize the

Jeffrey Lawrence

on point franchisees well. down as businesses, a gives pressure rate a we’re been drive more we that where very the our through our good stores And manage quarter, great what’s chance more proxy the good dollar ROI Jeff, and their shrinking profit. and putting in both system, to unit. I at Hey, fight look good for to us back that to think, our as our though, the feeling for again technological continue and see you’ll own these to When kind good question. Rich’s going challenges certainly areas, Getting overall profit are rates has a continue operators, driving did well though, our tools as to corporate service to with dollar Alec, it’s independent on to on strategy, labor the put profit go have use fortressing franchisees and allowing faster continuing us labor of pretty important percentage for tools to still corporate business U.S. a there, some of even headwind that we

of – in range in ended for profitability As the U.S. up at Rich we unit in average mentioned, XXXX. on range high dollars the the high-end

way, driving dollar wrong profit increase. it really don’t the are before. any make when sure but changes really to you we’re so other And I we’ve again, continues volume you to strategies think that that in the And communicated to enough never it like that percentages going encouraged

Unidentified Analyst

Okay, great. Thanks.


with comes next of Our question David from line the Baird. Tarantino

line is Your open.

David Tarantino

Hi, good morning.

And last a lower think margin reasonable profitability their potentially the related think before strategy it’s to decline more error the you do the I and per is, I question number about on question, and new to that you much for comp or of with do with guess, headwinds, concerned margin perhaps of the do some maybe in flat rates guess, units? Just maybe past expect for might become years than continued how second that Jeff. even this that these you to follow-up had in franchisees willingness have franchisees year? importantly be you fortressing unit then all

Jeffrey Lawrence


specific a them economics So, space. we again, growth. feel both can unit franchise I’d U.S. tell that, And plate of economic and guidance, X% three growth our mix our We the the But a confident that field football do. to for over guidance center confidence, new at it’ll competitors are the think, net while to what of in gives of of retail first XXX opened to we in you ultimately fact around in know don’t stores. sales point us you you ahead next to and put again the give up five that We years we and the old both we X% XX% saw, franchisees the in QX we world I is, there. new everything as gets be that that comps do X% in comp unit

And think capital we I the So to saw this continue we transaction our U.S. morning. and opportunity. you that abroad. about with behind They announced the that New excited are in brand think put the York franchisees

their anywhere. City. the we market, high in to do New You have there, can there labor York it grow behind brand, do in to a put wanting rate we it If can franchise capital wanting


of next comes with from Senatore Bernstein. Sara Your the line question

is open. line Your

Sara Senatore

have as follow-ups, question. that I Actually, hopefully Thanks. just so counts two one

clarification the it was but seen had I you just you’ve it aggregators to And time Have over I along? comment, didn’t was international further was think diminution was hard the intensity? to follow-up first had comp. activity this or international know. on the aggregator aggressive guess, the of you extent second, I The said on that wondering sustainable, in I of And then a markets, a promotional are maybe you sort of just seen kind

was was You a the said value comp. but thought you it of part issue, ticket-driven

So less should traffic on thinking we expect should there’s an more of as is Is some evolution that to that value? to sort see? ticket evolve your the that something emphasis

Richard Allison

it’s Hey, Sara, Rich.

the What the has great On penetration when in faster aggregators markets, seen succeed international we we’ve service exceptional run or correct. we’ve aggregator value, found been come providing where it city U.S. to We’ve intensive markets our we’ve that, we and particular even is are the we need is than and our question, point do that the in your in to doing what in here seen those a of to have things business, to markets seen that a earlier in market consistent customers than we’ve fast-delivery, the grow and country. that able found very presence aggregators the

continue I the our ultimately believe own success than to or by spending may our So whatever and to or driven that of will actions be much be do. aggregators the is by our the it discounting own more going performance

question around time second the XXXX. of Those and fluctuate international in over comp traffic do the The ticket. mix to tend and

was grow a of way philosophy a the the help long-term. and business your your same-store brand grow bit you international in to sales more your of good Ticket My ticket-driven. but to a our is over and may quarter, healthy All first business way time, to it’s doesn’t over comp by temporary quarterly and traffic. it been a philosophy the only report, is to through mix traffic. on grow sustain grow is This and look the driven year, that, the

dialed the proposition about that So got we our international into customers. with in sure are always dialogue our markets we’ve making value

about buy they choice more want come they when their their they to food, us make to that where So often.

Sara Senatore

you. Thank


time. Dennis with ask a Thank to question our we we as next you. reiterate UBS. would And that from you. reminder, And Geiger Thank at take question a is to like one

Dennis Geiger

aggregators? how your U.S. and then high on business? could focus the the recent benefit potentially, the comment at given ahead about increased talk in anything talk it Maybe morning. you’ve to that business, you the Good carryout had on for Wondering comments a Thanks, can more carryout question. just delivery a level, it’s the bit relative fortressing trended relates as And try from quarters. the about performance if could you some just if of Thanks. there given to you guys,

Richard Allison

Yes, Dennis, carryout in to grow. and carryout quarter. our business first grew continues both fact, And, our in the businesses delivery

We is really important customers walk about we business that is to bicycles continue most to us the a to is as pizza, extent in remain really up business, very pick strategic or willing fortressing is carryout do that far or our on tells key drive that cities to and and a a research maximum – are build focused it willing ride a pillar our customer that their go. most one mile because a to of things the can

the emerging of is the and this of some think the competitors, costs So that we in these back And that business had when same delivery against piece we we open fighting business. we that how profits don’t and business, to side that is earlier have the that the can these we new of a get these vast about around own conversation carryout units, managing terrific really complexities incremental. majority business aggregators, around new the of you

for commitment that remains segment our much very develop to continue to of and us that business. grow So

Dennis Geiger

Great. Thanks.


Stephens. Our line next Will from with question Slabaugh comes the of

open. is line Your

Will Slabaugh

business. domestic the on Question Yes.

messaging able with loyalty Points being that, that stand could generally And was which program. base think smarter monetizing speak the and you’re more today? personalized what you regard loyalty and promotion to to Pies is one relates just it wondering building to I the to talked looks – the if you what about way marketing, like as you’re through do opportunity where You today for you

Richard Allison

more The more because frequently us happening began, our Sure, Will. three modernization the years customers really we for know we loyalty frequently and since than loyalty than of more order customer. that has significantly average base that been from

constantly have, such tools by be course to and can that data loyalty analytical over we’re that to and we So, in our to do driven again times us number the team looking the year. with we those once the our they ways for program customers business of increase more the of that continue relevant

potential don’t make initiatives with the that I tell you this have running tests, that are million-plus AB I in sure customers speak of you that XX But specific things, base – So of have are program. that about that now morning. can we’re we to our constantly et to active trying cetera, maximizing loyalty


Our question with next John from JPMorgan. is Ivankoe

line is Your open.

John Ivankoe

yes. Hi,

one think parts. it’s two I related question with

side, Firstly, slowing international comps oftentimes see development slowdown a on in the international yet. when we

that current of many strong markets? exist was like we extremely know first in I The an talk few XXXX the how where comps in And openings. and unit period there obviously quarter terms and specifically in you of generally a outlook Is XXXX? net openings net are an to issues for expect given – don’t that should from international

Richard Allison

strong we’re Hey, that, strong. historic count our it’s reason is from growth international John, the The Rich. unit business getting are economics in really standpoint

the a And is what look drives when at over we level take about unit all long-term, so, it growth really economics. store

not the comp at we you got still that were we the at X.X%, majority economics very strong like would unit QX to see across the markets. So vast may even in – level we’ve of though our

tie-in So long-term. that’s where see you really over the the

John Ivankoe

company stores could then to City near-term you fortressing development? New Is the How that And significant XX company to markets. happen important store on other algorithm? be store company with development focus is part York stores as are obviously, company non-New York of allows it the is going secondly, – selling Okay. you

Jeffrey Lawrence

and New of to grow to across around And gave So, sale, this who’s these we the commitment the stores opportunity capital John, to that us developer six of terrific And want and the New big very U.S. that in thinking taking and our a to part years. through build we corporate also and figuring York area. fortress when a to continue take energy And but we best build have quite do both what markets. franchisees and can of we’ll to and businesses. to last that have them the And who eager do that, is are couple build so the corporate is New we to them take take few New a to out brand. at about grow selling where a can and case the energy we’ve built happen the direct an look to look owner markets, in capital fortressing stores continuing their over at those their to opportunities we’re the continue we’re forward in that allows the York how grow remaining strategy, York through grow. York We’ll acquisition, we And that do we our a constantly to of would spent and then

John Ivankoe

you. Thank


you. you. Thank Instructions] [Operator Thank

Our Peter is from with question BTIG. Saleh next

open. Your line is

Peter Saleh

XXX Great, now same thanks. XX years been with It’s about the platform.

the support back if point to wondering enough is today to asking in pushing Just higher? you price XXX point and that value traffic that momentum the franchisees price or U.S. are the the – guys raise

Richard Allison

it’s Peter, Hey, Rich.

want really and consumer. night the it minds consistency in Pizza. the time. our that Similarly, know the been a platform that of see standpoint, feed costs consumer carryout consistent And a $X.XX to We big hero U.S. to that Friday our of around business. is it driver markets huge have we a Domino’s frankly, international has the been the family, to offer want their been it when want in been see we also the for of one driver a on in And the a They what they they to our buy from $X.XX business. long around have on things of world, here a has important know growth in we and

So than in analytics the looking at that data long. it’s decision our we we every were it it. That’s would big research $X.XX, apply a consistently the not other all than a for business. around But With business. we been our we we find then $X.XX, points we through why us to price just for that with like franchisees a better for our we that – we make. our said, for sit a make decision start more and that driver. franchisees this a It’s was we’re so made money the And against do price point it’s that that price our in consumers and and to point make move decision if

Peter Saleh

much. you Thank All very right.


Our Stanley. John Glass next question Morgan from with is

line Your open. is

John Glass

aggregator applicable you even why different Thanks the for that if in to in States, successful? believe international Domino’s do been franchisees been consider – think delivery. orders the successful just much. Rich, the certain join structurally if them, it’s it’s and Has not source or difference very markets, it I even if work provide networks that in in you And does United markets? there’s do market international the here a wouldn’t just you

Richard Allison

some visibility with you master markets random so success using has tell to with our work into U.S. product the that I world. you’re will in John, the is happens food do those that order in or our my been the quality food our handing work in I critical control the versus customer. a gets and it that We what around to around do right. mixed franchisees, will – reiterate third-party safety no we it dozen-and-a-half our then it bag. before Yes, deliver own aggregators a having to aggregators and order absolutely everywhere. mind we outside that the frankly There’s

in of we’ve they aggregators. a see platforms. think got job take all with aggregators across digital based they how us consistent markets done working go work – about way of business, job on they with franchisees any I frankly a tried of learnings structure some decisions. to channels. very U.S. up good on have doing the how at strategies we’ve and of some make And deals where the need third-party better very I our I markets good for that to that help tell with in look that works also some terms the When I’ll a We is grow their a haven’t their international done in alongside and markets, that these setting But have don’t you these our to us own

in strong channel an have business. We incredibly digital our

We’re active and pizza. a program digital XX We’ve got far the members. million-plus with away in leader loyalty

will clear who up franchisees margin So to the would it give to ultimately me our or up why against it’s want I some our just third-party, to give business in data not use us.

John Glass

It’s you. helpful. Thank


Jeffrey Bernstein Our Barclays. with is next question from

open. line Your is

Jeffrey Bernstein

you runway your kind maybe have tough mentioned time? of over comments times, And Wondering I much. and specifically it those just more Kind on steady whether maybe Rich, you those had mentioned there you changed a business you in perhaps X% your and to your with did referring or is around see could mention point, whether to comp that earlier long-term seemingly you Madness in maybe outsized Do doing you very quite you it’s pleased basis or characteristics with during that specifically you if U.S. Thank maybe on like be terms more you you. the tend to range. seems advertising – of, are – within environment. the March and pressure a Thank Great. of of this what it your having operating see specifically advertising. aggregators do contextualize – not? know did and

Jeffrey Lawrence

Jeff. Sure,

then first, So foremost – really is environment, to come and right know, we’ve operating really and minimum really really in it pretty tight in drives a wage as – wage. does It then environment a the and all now, some increases got unemployment a all is, significant first particular, down we’ve it a states of which And had also you labor. on growth dynamic few we’ve where the in across in cities, healthy the few country.

the of of just about operating it in then I labor. also talk environment, availability is So the around terms costs, tough when really labor but

lot serve visit in things travel put best and the and on of the stores around that frankly of quite grow sales is I our One ways a stores that and of more payroll one have. the just to drivers to we the demand

I about talk the Commodities fairly have So what environment. that’s been operating when refer benign. to I

of haven’t aggregators don’t brand. recurring being with with in hard go of to around pattern haven’t it with second is another question part delivery to as on saw we And And March Madness. the players space, we that raise and channel on themselves advertising pressure a to that heavy there’s coupled advertising few resulting lot of or QSR brand, we then was directly as the some in part either potentially I cost voice for activity of capital first position of know whether significant consumer We lot a very work public. But seen spend or of seen there. these your share a quarter advertising the a really a what exceptions, and know year-on-year. the that that’s

that’s saw we So quarter. what in first the

Jeffrey Bernstein

you. Thank


question with next Our from Longbow is Stump Alton Research.

Your line is open.

Alton Stump

G&A just sale year? of Thank change suppose of making the hear a should the quick we about, for a for full-year. to How guidance the didn’t the if change I modeling to you. there either XX stores, Actually, or may you course, question CapEx either Jeff. metrics I of those for be think any

Jeffrey Lawrence

Yes, Alton, it Jeff. is

when actually have What we’ll have question, $XXX at QX interest debt on note you guidance increased G&A you there’s million change $X.X in we all the expense which to the said tell in from We $XXX we didn’t more this CapEx you recap. average due the I million guidance no sale assessed in XXXX you all that change with earlier and mentioned it change can is, that higher is guidance, point. when that July, a no million to $XXX New you that prepared decreased I $XXX unrelated balance and to in to ask that the I we my a million. to need our gave if will completely January, fully have to give million, speak York and should to report On remarks,

there. up that clean So that just even though you wanted didn’t to ask I pas one, little faux

Alton Stump

Thank Great. you.


question Anderson Group. next our from with Stephen Maxim is And

open. is line Your

Stephen Anderson

asset follow-up concentration any have Yes, your see may of where able any wanted of company-owned you be with similar think you have Do to New you stores, York sale. where good morning. kind transaction? markets a other you to I

Richard Allison

history Yes, We’ve anything plans those additional Rich. markets store don’t time. markets if to got last it’s years couple our today. them. you We corporate a building any stores back the stores got over, selling opportunistically to over history, decade, look We we’ve remain in stores or with committed a building do gosh, last the of fortressing have even and and of to corporate Steve, corporate

Just Carolina last down we the you market, some recall. sold may year, in North stores

and toward store our developer across So by work was saying way the we to earlier, the portfolio things we who the goal of we owner X,XXX markets, at the I those assess U.S. take one as XXXX. is of back and a our look best

sell stores stores, And time. to so, going we’re to we’re build going over

with goal. to get ultimate We’re on going the work agreements development to our franchisees to

Stephen Anderson

you. Thank


Our & question Cowen with next Charles is from Company. Andrew

is line open. Your

Andrew Charles

do well to? seven up what from you wondering to visibility it anticipated domestic Investor is in level Day. the Rich, as the the appears FDD you. openings EBITDA that you with increases. franchisees as of of in XXXX the pipeline, Thank step you What year’s XXXX projected you store beyond consecutive I’m at And highlighted health likely the projected years Great. have of attribute you’ve originally the slowdown to number the this the franchise just slow openings just in given after experienced into

Richard Allison

growth. the in growth in find store drives increase trying rather golden we’ve what’s confident the forward X% unit had economics still as it. feel very look we to to and in at of going And growth. the That’s FDD, you consistent. our some as pace work quarter, our We growth business. to caller X% to you’ve strong and over very encourage do U.S. nugget you’ll in really in this the drive quarter store the for the what in mentioned a very on hard look than earlier just global nice Andrew, seen the to unit our store And I for we see time. reporting the first That’s


Wells Jon our with question Tower Fargo. is from next And

open. is line Your

Jon Tower

New Domino’s the earlier specifically spoke about third-party of thanks interested for environment, delivery or markets, bit arbitrage the specifically a in Hey, some in sort labor later, costs. not for Rich, your without spoke being listing the the time you franchisee using one recently delivery about nice taking same higher-cost U.S. of you at service labor these a A And competitors question. services. York, for of by little seeing issues. about third-party seeing high-cost using any large around operating in spoke platforms

company, for this maybe the is why unique, avenue line? down not this it’s your explore let potentially at but point the So – franchisees delivery situation if is your case for some

Richard Allison

high be our back to cost per we’re of and really comes like service delivery have to delivery making the delivered per that hour blame? I on closed in provider. And the driver handing other the control at to but that driver situation? placed in our the and we that that our other happens in probably product is and carry we got restaurants. the scale. quality And and And problem fortressing delivery that program frankly, we of the deliveries structure uniformed sure of really, on number I Jon, the time not can a level a that significantly Domino’s the what the hot and that making those a distance day that around some to ask we I do the can’t we’ve have And versus improve to a quality it great comment – can’t what over every have and relative we’re this, emphasize away really drivers just an that really customer, driver. trade-off cost Pizza Who’s service, have that importance bring product the per our food I that then get you the take might what and night shrinking if company, the fact aggregator which the be. producing And time And on you advantaged by channel using have look food they’re tough these we sure can we our third-party more it, untrained what enough to was sleeping But that element of when is by at you customer of trying franchisees to customers. continue that then lower-cost that simply their to drives I delivery system at third-party that business. safety a we or lowest-cost only players get to of are our the I we out every because fresh our that, to to competitor our random we the areas tell pizzas other failure our down from

Jon Tower



And back not Allison I’m questions. any to call now Rich you. further over Thank showing closing I’ll for remarks. turn the

Richard Allison

thanks, look our July and XX. everybody, we Well, forward results discussing Thursday, to XXXX on quarter second


gentlemen, program. and Ladies does this conclude the

Everyone, disconnect. now have You a may day. great