Docoh
Loading...

DPZ Dominos Pizza

Participants
Chris Brandon Director of IR
Ritch Allison CEO
Stu Levy CFO
Brian Bittner Oppenheimer and Company
Eric Gonzalez KeyBanc
Gregory Francfort Bank of America
Sara Senatore Bernstein
Chris O'Cull Stifel
Lauren Silberman Credit Suisse
Peter Saleh BTIG
John Glass Morgan Stanley
David Tarantino Baird
Dennis Geiger UBS Investment Bank
Chris Carril RBC Capital Markets
Brett Levy MKM Partners
John Ivankoe JPMorgan
Jeffrey Bernstein Barclays
Jon Tower Wells Fargo
Todd Brooks CL King & Associates
Andrew Charles Cowen and Company
James Rutherford Stephens & Company
Jared Garber Goldman Sachs
Call transcript
Due to licensing restrictions, you must log in to view earnings call transcripts.
Operator

Ladies and gentlemen, thank you for standing by and welcome to the Third Quarter 2020 Domino's Pizza Incorporated Earning Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] And now I will hand the conference over to your speaker today, Chris Brandon, Director of Investor Relations. Please go ahead.

Chris Brandon

and everyone. Carmen, it, appreciate good morning, I Thank regarding quarter the joining us XXXX. conversation today for our results you for of our third Finance, function, our finance I Vice that includes took today joined our organization, to an Michelle Investor her of of responsibilities. Relations on within am recently addition Hook, role by expanded oversight who in also President our other Financial from will Executive Officer, Chief feature and commentary Chief Officer, call Levy. Today's Allison Stu Ritch

all Actual to ask of this for a statements our apply Both our that results investor to and this could to the morning's the differ call As is others forecasts. also are today. I and of the media earnings call primarily listen-only XX-Q our those audience, mode. remind forward-looking comments members be in website. I in available want or materially release trends from on documents our on everyone

Risk the in please more discussed our to Factors with the filings For refer information, SEC.

to release maybe the call. referenced In that addition, X-K on measures disclosures please to and of financial earnings refer today's non-GAAP reconciliations find

always our today. as accommodate analysts, we all do to request to best Our of our coverage you want to

you one, question this Today's via the Allison. over our one Ritch if I'd to ask we that, on like is please. to to being turn Officer, conference call you recorded part would webcast is for Executive replay So call call our and encourage being only also website. Chief With

Ritch Allison

Chris, you, Thank good morning, and everyone.

Stu's First, new earnings our Levy the call CFO. morning, to call. This this like first will be to I'd Stu welcome as

at we we him as QX call. welcome to retirement his Lawrence well, miss our we're you our And Jeff on of excited will all As Jeff Stu in experience I Domino's business. announced you by at know, supply while wish team and enjoy and we a and Services deep also and very Stu, from months led supply group leadership, here all record brings his of work Stu successful XXXX. at Stu significantly having division is to connection working from a performance and finance his with the Republic CFO. experienced Stu of has Under ahead. chain strategy operational years professionals. since Sue's our financial & and Domino's have a and will talented our supported of the culture, and in Company. track January Domino's strong chain planning operational new of the improved know Bain very

am before and first us thank Stu, express your this give thank Now to a turn our to want to for and that's moment the I franchisees brand, energy, I to have to and I for incredible for of operators, And teams, and extremely support franchisees corporate of around with many for I you your our to values have teams, the continued for proud unprecedented all your you In your the to first. efforts hustle for world. serve to you our our lead customers, this franchisees the continued CEO. face and customers the world. you, serve to morning and our customers. your brand, want privilege our for finally operators our passion our deserved over well you this very the around To to you the as And pandemic, take continuing call in do a

the to Stu, call more around back and quarter, So over thoughts on to to his the third come to And my over Stu the on the share turn with I'll for I'm you. on world. then that, Domino's quarter. going broadly remarks business the

Stu Levy

with months In quarters work comps, you continue of of our consecutive incredible XX straight overall hard with a the and quarter, and the broader Domino's everyone. testament restaurant lead outstanding around and forward the quarters in accomplishment truly strength to world. Ritch, and of good you, positive positive Thank of a the the coming looking years. and brand, U.S. and the international franchisees XXX really sales, to we the excited and working members all step to I'm into industry morning, I'm role, this of to third comparable team

store We XXX also continue gross in to stores net and increase XX our stores QX. count, global opening new new

QX Our expenses. diluted strong EPS partially over an QX, XX.X% results in by resulting was increase $X.XX, primarily COVID-related and operational from of XXXX, offset

to both a for year down while same-store grew growth. U.S. ticket grew Breaking QX, provide business Global prior franchise the me detail bit X.X%. XX.X% year U.S. as in in our grew X.X%. stores business a X.X%, sales results Let XX.X%, by for negative grew And by XX.X%. excluding comp increase retail this our currency financial over stronger rolling of of increase the impact sales dollar. the lapping order a prior mix U.S. the international XX.X% were QX. sales increased healthy When comp, of Same-store XXXX, more sales of up by regarding was a pressured and our The a our foreign driven global retail compared XX.X%. company-owned quarter quarter,

shift business, carryout Shifting continue the XX not more retail the in tend yielding unit see in of a fee, on items relative This way, but the openings items in operating stores customers include per The driven by during in comp quarter. our overall for through international largely has count. store ticket We value and was from fewer service order, store doing quarter, fewer growth, the safe QX our channels. pleased earlier and an three only closures. a improvement were we benefit X.X% quarter, ticket. consisting during good growth which delivery in the sales, pandemic. and both was ticket method sequential added to growth, which a to to in and in a convenient so thus a to international providing result to net our U.S. higher During of reflecting third and In other closures a focused resulted our some restrictions, delivery remaining XX a relentlessly and in delivery to orders, hour temporary seen over order which those we also overall increase more drove see and markets

added business We store comprised the primarily openings new and closures stores India. net openings part those international due of occurring particularly XXX in work on to continue in businesses. our XX during as has globally, closures permitting sustainably we construction had well general strong, XXX store with Our pandemic economics and remain with their Overall, restrictions, believe impact our the to net QX, negative franchisees to government unit U.S., as grow delays. in and a

supply from third and primarily driven up sales revenue in revenues year XX.X% Total U.S., higher quarter, quarter U.S. which chain Turning turn were the to businesses. prior revenues and in the operating margins. by retail store higher the for drove our in

continued in transaction, by the year-over-year revenue a expenses. as approximately and as costs, negatively performance-based pandemic. G&A from XXXX, similar notes XXXX we've operating was significant percent to higher pandemic, interest expense. impacted Our resulting margins due million related recapitalization a million Supply and to as COVID-XX average as to quarter. weighted approximately primarily compensation higher of as operating food lesser store variable the higher revenue supplies pressures due from commodity compared $X our investments borrowings as revenues offset consolidated by COVID-related year-over-year food Company-owned revenues negatively labor balance our of $X was decreased driven percent margin the costs. was QX, Net expense also percent COVID-related during to margin higher margin as primarily third higher prices by XXXX, see quarter, funding increased increased expenses extent, impacted costs, of down operating well business. under throughout fluctuations a from saw and U.S. variable made QX, was debt the primarily in by from XX.X% higher in down our a partially to to and to chain a Sequentially, XX.X% franchise additional

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

elements, volatility continued QX, equity-based rate effective was our to up combine benefits. these in over income $XX.X positive tax tax XXXX. or third net When We to those related our million, expect we all XX.X% of see compensation quarter

EPS in year, prior the increase of was an QX in XX.X%. $X.XX diluted $X.XX versus Our

down break increase $X.XX. $X.XX a by notably, us benefited me results bit. the Let operating Most our improved

rate, us repurchases tax impacted effective diluted us count, as compensation, benefited tax remains us financial $X.XX. lower higher primarily to interest by $X.XX. from positively primarily resulting by from strong. pandemic by net $X.XX. to negatively benefits driven impacted equity-based Our lower average share debt on expense, standing cash, our prior balances mentioned Shifting previously, finally, higher share higher A And by the I resulting

than we million available and during the operations of generate continue available as million $XXX positive the cash, funding in quarter, of capacity quarter, We from variable more end $XXX additional the of cash our notes. to third under and had borrowing an

During of flow million. $XXX the by approximately quarter, $XXX we for free cash of After net third approximately provided million. operating activities we cash CapEx, generated generated deducting

our in the form During QX, we shareholders share a per $X.XX $XX returned quarterly also million to of dividend.

share remaining under week have since our $XXX board the of repurchased repurchase million Finally, while future under program the for not we any first authorized shares January, we have repurchases. program

on wrapping to through COVID-XX the results. impact financial walk our of like you up pandemic the update, I'd the Before QX

for our steadfast in do team to our our customers franchisees, our mentioned thing we've and As are members, we right commitment communities. the previously, our

G&A to business G&A the the QX, closures in range and our the revenues store fiscal guidance was During QX QX vary other And and our provide on in number. COVID-XX our business of things, mind, our that and among original I communities either our on the QX, expense full from year $XXX from sick to impacts equipment, to earlier on other Separately, the light some impact corresponding we performance-based million compensation expense year, direction $XXX measures anticipated to the for G&A $XX expense plan, in the franchisees international million team the performance our pandemic, to in million. year Keep visibility pay as the estimated overall in XX-week currently our surrounding enhanced compensation and partial support uncertainty given this wanted royalty due total of million. be versus for for annual withdrew our safety was year. G&A growth can cleaning increase full depending while members, and the impact expect from $X We expense. our the variable in

closely to dollar. to shape our I commitment all of our royalty FX In monitor and members the the will again year by remiss third team which for guidance, addition and uncertain generate of that times. in performance it on currencies strong we previous our estimate that the didn't Ritch. G&A we financially. I'd to allows us fiscal full our In closing, world. a joining dedication thank a strengthening aspects to impact its given $X very XXXX driven I'll relative to the these take if is And revenues, incredible Obviously, estimates, business to It's the And we franchisees minute the continued have and these you foreign the currently their continue negative over now around good million our turn for to Thank and than be finally, quarter, today. lower in U.S. customers business results. remain communities call operations could

Ritch Allison

the to once know you, investors on congratulations certain and and ahead. the you our new are getting in analysts Thank role. I'm to going better Stu, enjoy days again,

Now briefly questions. to U.S. we I'll businesses results. some moving before take on international discuss our and our

get about U.S. the let's business. a discussion started So with

delivery, During with food for favorable the to pandemic challenging a third continued environment. coupled operating a quarter, drive tailwind the

our and across and and on squarely remained stores convenient, corporate brand safe, communities a food service as focus experience. customers our affordable serving and franchise a our Our with

our supply We people resources. country, pleased our see first, investments centers, support our support chain we their across our making teams. our continue and to teams to to also were put Around franchisees in stepping the our stores, corporate up

during posted we've business, level marked same decade store our is XXth the that long We And our almost The quarter. consecutive over this positive growth. same XX.X% of store strongest sales third the growth in sales of any running number of without promotions U.S. achieved course the quarter run. aggressive quarter remarkable

last of ran we XX% off-boost QX promotions. two During year, week

to the Now our focus future, and part continue profitability the value messages we will acquisition level us an in these quarter. everyday customer boost important the be our while weeks to service strategy on demand strong store of during and underlying expect on allowed

our unprecedented we volume execution on supply work Now still stores chain I the do service pleased but in have am our to centers. levels, and absorbing both with in very our

During the terrific quarter, we new products. launched some

I August our wings Chicken two has new feedback improved pizzas, Taco as July chicken and very Cheeseburger pizza and pizza to personal Our been you, it. new positive launched Customer to most And new with added tell my we our pizza specialty chicken have on launched on on pizza new customers, these taco sauces products. one is frequent with far favorite of our our X, thus XX. jalapenos

and service our We continue to to of stores. technology enable to roll methods operations the contact out with improve

U.S. been Delivery carryout and is Carside a convenient and Domino's by our over experience Our has embraced XX% U.S. our franchisees, across providing available of overwhelmingly the today contactless stores,

to customer of awareness contactless We to drive working are continue delivery.

deliveries. our giving to our technology operators XX% better GPS approximately now is and of and routing our in allowing a U.S. stores, of the Our experience place optimize in customers better dispatching

now out our oven faster, pizzas service team just nearly few driving improve levels. our tools Our team and member our of are the are These us present are improving stores, the enhanced the make U.S. in to allowing and experience. customer the across get the is of country, innovations, and XX% many in line a rolling to

bring in the will customer to Now and and with us, opportunity us bringing it and continue frequency And quarter. discovered create during them customers third loyalty to are quality believe strong talked a adoption this during frequency. we the product to time. drive opportunity Digital and new continue news or convenience, Domino's see brand loyalty We about areas have a hope with proven performance good growth both that reengaged back. value, give our additional to to and we've the lot customers

of obstacles franchisees tackling Now pleased we a brands. teams. during remains for given is as across to open is and as service across result switch quarter. service category have placed permitting of our and to anything efforts I'm consisting But growth critical on still stores U.S. XX what our openings given only to the Collectively, circumstances, and the the construction XX continue has pandemic customers of the in when happening category the Unit and is many broadly closures with as terrific the managed the challenge, fragmented us you very a consider the and focus often the remains our restaurant net and three blocking industry. across new we Executing country. those on that This U.S., corporate more else.

franchisees fortressing, continue tied which a in work Our making around data importantly, for costs, prove who are out development results the delivery to our drivers, hour runs assessments service, closely team and an on franchisees our to great most continues strong to per for driven and economic and carryout, investment brand. to delivery return

U.S. and highly unit pandemic potential for uncertainty our will obstacles future, while the the presented optimistic around growth create the the long-term. for Now by short-term I remain in unit foreseeable medium growth for the

can to proud going to to U.S. the the and while and have on discussion to for the So and work the I'm of as need driving out retail third we're on continue future, fundamental quarter strengths. for don't we profitable long-term. over will we And our a our to very diligently performance areas optimistic our answers Domino's U.S. brand, the growth, on execute work-in-progress All-in-all continue on sales all close improve. ability our franchisees business, about we our where

the was I of to pleased Thanks franchisees. on momentum great business the to move build international, our where let's quarter. the across the international Now work during master see to

sales third highest achieved international result now of quarters quarter since positive sales, the ended same-store have consecutive of X.X% the We XXX same-store XXXX.

markets. see visibility restrictions closures we to two and franchisees temporary to momentum. to our master regain performance continues back In continue and Spain where several wide China, generate our business. India and of support significant in others. and to our continue we markets open number had our continue continues and these large pandemic compared worked around be in markets tailwind from have a service allowed way in remain strong challenged other among are and master been unit have Japan across to where We markets, during in markets diligently franchisees to including markets, and stores disproportionately retail delivery stepped variations normal. quarter. throughout operating to to are order we these forward reopen Germany In from fighting still operators the benefit the our impacted, we've to international build to pandemic counts same-store for the Alliance growth, of the to success true brand. the the long-term And sales ability sales quite In the the that As has us evolve world,

Now turning now that temporary temporarily with and late the fewer approximately still in closures a some vast openings our attention We’ve openings. closed. reopened we stores X,XXX in quarter the those have of store gross than off March, of XXX Coming to XXX are regained stores. peak store momentum majority have new during

slower difficult remain be choppy. the new However, our with In close number franchisee necessary than those seen will concentrated India, pandemic. not by foreseeable pace for closures of than resulting usual and future. by that of in will unusual, in also impacted a closures, the the steps underperforming thus sales anticipate far the growth stores. were continue our growth the store continue some growth Those XX negatively we've and offset net higher to near-term, took higher unit to the were to that units master be were environment retail where Visibility pressured could

months, the whether of able timing past delays be at given will over seen the stores to the pandemic growth having persist we've least XX,XXX store we goal reassessing achieve are the open has international of choppiness I continued am by potential highly optimistic openings While previously XXXX. we in our as that brand, regarding to the articulated and currently our for these

globe very third high delivery, global the at international up, with The specifically the favorable. the quarter future a to unquestioned matter, pre I very delivery growth business long-term this our our growth as store business want to about back sum the our They the up and pandemic in serve service customers, I to well adoption I we a even as the see international and continue business. with our all in business, our and international delivery capacity level, as that optimistic franchisees. of brand Now, are it us was All things many digital fundamentals challenges. us pizza ramp success deal ordering market It incredible a global to great true The our of confidence positioning, strong pursue around to very face share long-term of backdrop across their the international upside, economics master food to and a I'm testament global so of performance and continues and master of strength unit commitment pace, pleased applaud I timing and be back And to pace in the be model, and remain in to communities resiliency this clear, franchisees. value the our our a for position and have look across and eager our our enterprise. category invest of opposed to to goals. I business. the is Stepping considered, around allowed to in has our Domino's coupled best-in-class

know long know to the operational continue how the related continue, don't tailwinds we and we'll and pandemic we feel demand how Now, don't challenges. long will

the consumer sustainable position delivering be and your competition our technology believe we around and and the In global we and reliable competitive focus every to of with and invest will long-term. store and up where motivate economics customers, to me them challenge make we'll ourselves investing to with [Operator driving and ourselves to our that, and fortress proposition, our drive questions. value game. Bittner Instructions]. the growth, menu question the help, am in build strengths long and to the the We'll to franchisees will will and continues our strong, value values, to go to and my the external, offerings differentiate you. day. serve transaction Oppenheimer. in operators, the areas, mistake, and continue high-quality I landscape, shareholder our over regardless comes relentless delivering to franchisee world. continuing Thank positions day, in open U.S. be on and market every consistent a I from continue from operators no These our on continue unit win it our closing, to order economic leading And are we to However, continue with rise support ahead. each And the team. to happy first the proud to Brian line and take Please

Brian Bittner

role your CFO. and Stu. Ritch, morning, Good on good new morning, Congratulations, as

Your very growth domestic caused growth. to want EBITDA through question on comps, to constraints But profit they be focus flow that the impressive. revenue my I this continue to quarter trend below

outlook, the out much on fourth We for fourth about be model. quarters, just little looks COVID changes is How Can talk that quarter. that the to many, to of also the in the quarter? million structural Stu up inflection about a haven't seen Can material transitory? the separately expenses? the in Thanks. expense versus It nature you stepping you line. in flush potential bit financial cost year-over-year way G&A $XX And gave G&A on a in more these many

Ritch Allison

morning. Brian. U.S. flow start side Hey, and Good with question around the the store your I'll through.

focus going serving equipment, our just to ourselves the of in team position presented there in our that's demand If in the much we that supporting COVID, a for member, frontline, quarter a to demand. related on And relates to continue et on we As sick store. the taken The we've been cetera, care customers, we operating this see in Stu of pay also taking the is to in business of our and are very unprecedented hourly then some protective the team reality outlined did of back on short-term to of his members face growth that enhanced things, we boost are costs in significant two in operating those us pandemic that in benefits, pandemic. team members accelerate long-term environment. we position earlier, discussion care cleaning that compensation, believe the this taking that and the to supplies, do

do as elevated of to the costs don't over long I But in in of It's at And the operating I'll the the see reality on environment, comment level expect the operating part let see As that. we're in around pandemic long-term. in a second G&A, a business changes pandemic stores. environment. simply we structural operating of your question Stu

Stu Levy

before the that's little just And the And more actually, Yes. QX, And to been an do more just basket me volatility significantly is Q. on in little color markets the that, QX. But, bit that in up the commodity seen, a for was relative us I add let effect in a margin. food we've bit detailed this the during pandemic.

input highs we've us, break So, QX, a if And you which up at that and across a low decreased QX, other been was for cheese, volatility bit, the is QX. X.X%. in commodities. all-time year-over-year down lot a at of basket And little was in huge X.X%. it all-time QX, similar in seen it's obviously an

on So our supply puts store of both and terms business business. obviously the headwind that operations a in chain

year it's but it happen pandemic. higher we something here which have handful performance-based week, increased the driver the years, there once On variable compensation, other but this XXrd to is so in every G&A the largest get the a force G&A that we obviously of year-over-year, middle a of driving is side, drives

So there. a it bit additional little adds of complexity

Brian Bittner

guys. you, Thank

Operator

you. Thank

Please Our next question comes Eric with Gonzalez ahead. go KeyBanc. from

Eric Gonzalez

Hey, a just question on the store quick international closures.

in segment of already an in you to should expect the next the adjustments? number India those necessary see those quarters? given Do few volatile in of the like elevated think master closures think, I made franchisees number we closures to-date, the markets have

Ritch Allison

in very we've you have very stores the great teams Yes, to a of taken also to steps assessed, are we in know, team necessary they've and I international in that as the business. the as get are the that some the for And in to closures the about India X,XXX that. six ahead resiliency look closures we hard been challenged months were pleased about back and portfolio go there stores had And long-term. near-term of and see those And the supportive applaud temporary taking those worked ago. yes, and reopened, take structurally And, question.

around business, it getting growth As medium we international. drive to as do optimism deal we in out to still of long-term across more to great a But I see some the the and expect the have as near-term, the look see choppiness, to potential going broadly make delays. construction expect sure that to relates also as I look continued and then due we And markets we're permitting focusing are few stores open on going closures a resources growth. their the that reassess stores portfolios, and forward across

Eric Gonzalez

you. Thank

Operator

you. Thank

America. is Please Francfort Bank go Gregory ahead. with of question from next Our

Gregory Francfort

are the see paused don't space I think you the a companies guess I I for in that maybe Hey, for thanks Just What just thanks thoughts. for have up why quarter. started guys, share restarting haven't question I most the far? consider to so the buyback. you in back conservatism And Is of I stock you had any guess, question. I looking and bought for Stu. program? kind think it the back for,

Stu Levy

Sure, the how cash way our going we're that right no Yes, -- whether to it's where our for what deploy problem. look at is, always us, question. return I to appropriate. to appreciate shareholders the to and

of now that cash ways like business in to best earlier to we or think they figure and better to to better preserve visibility we've wanted until had obviously, And lot how deploy with return the that companies did, COVID we out. got we'll of play a kind things and to to as out shareholders. uncertainty, understanding to going our were evaluate the the continue cash looked a I of how

Gregory Francfort

Thanks.

Operator

you. Thank

from question ahead. Please next is Bernstein. go Sara Our with Senatore

Sara Senatore

just trying frontlines, was I on more bit little right absolutely thing are And just on and But from the are to of didn't I -- you said you. Obviously, the recedes. any they do. structural think understand question. Thank or to do a a how to the margin when in we see the people like you modeling, about pandemic these ability the reverse standpoint practical this a change. think as investments

kind or year. of on Thanks. a turn just whether be are to that of these maybe really factors in that, which contributing they having some to Just from assume the I magnitude of mathematical the next just really of different perspective color order would just wage from are back increases or practical as hard kind rates,

Ritch Allison

question. Sure. Hi, the thanks Sara, for

his in operating to were in that remarks, going outlined in environment. about at a as million we're environment, enhanced to going costs long as continue some enhanced Stu you our equipment, associated care pay. continued As as of see with compensation sure to we've And to $XX with had around that cleaning taking some safety And think members we the operating are quarter look pandemic pandemic, we that about this during forward, as then the costs make how well. sick also COVID-related we're during frontline and elevated team

that long expect to in pandemic And see we as so environment, also. operating we're as a

value going changes over minimum as it our such members, we look members the and certainly and country employer value that will over forward. at that team offer long-term, overall we taking proposition time, with the at But are a us of that. sure look and also that the to across frontline making a choice driven certainly our by Now, team continue wage of increases evolved the we some take proposition for

team to are post team then a you'll as So, that back. then of certainly these we'll to management appropriately pare that their what a for great make team And our from is rewarded and some efforts. is for place sure focus this do costs work members we'll our there members, continuing on pandemic, see

Sara Senatore

you. Thank

Operator

you. Thank

Please Chris Our next question with is Stifel. ahead. O'Cull go from

Chris O'Cull

and you Stu. performance restrictions the Yes, congratulations are guys, impacted performance in morning, transaction order thanks. of restrictions? been particular in about that how lifted? size lifted Good the and would has And largely Ritch, markets once talk have U.S.

Ritch Allison

it's U.S. look if if kind business, look Yes, differential Chris, of I it's and where performance, across, of sure. and the interesting, I levels had interesting. we've across

of concentrations We've those better of lot brands. rural city the our And be know, have tends urban higher than markets. markets have urban you As over and of our and performed brand markets suburban stores, second type than to certainly, focused less other and time. a got

the throughout that We third So, talked in And some the in well. as second saw of the then quarter continued past dynamics to the also continue. other persist. That about saw that quarter. dynamic we've we

course is the ticket. see and that just We charges the moderate that in both higher our business. a we've in a ticket, that continue orders quarter. really, And And with really of orders increases. to albeit and the continued and what to charge seen that we've mix see around around delivery over by nature delivery the with higher But still increase then third increase food Price size. higher that our very ticket, And carryout to that added delivery, not really overall I'm ticket from price and the in pleased a in the just ticket, comes with coming other dynamic basket to relative higher delivery its delivery have was carryout continued of and line is increases been inflation, businesses. delivery modest

we've the what bit little quarter. about a that's and across the course the seen dynamics of So

Chris O'Cull

Thank you.

Operator

Thank you.

is Our from ahead. with question go Please Credit Suisse. next Lauren Silberman

Lauren Silberman

you you're rule. started impact then on the question, given do first the expect trends recent quarter-to-date the return and any NFL quarter? And new the to of Stu, the are restrictions bars in and the at the willing football quarter for rally college football cadence end? you provide willing trend the to restaurants across color congrats throughout Thanks trends of country? and How will comp extent given And ongoing

Ritch Allison

Yes.

comment this morning. see together, creates We Lauren. people occasions people It and for have sports televised back. certainly hi, to are glad when occasions Domino's most they any to we on gather ordering trends certainly But quarter-to-date So, won't Pizza. love

gather And and it it. you the folks know, for watch happy so, in see being the and able less seats about, to than I'm to as TV that being sports certainly coming us, it's on sit about, able back. fans to And is being

the that those at favorable view results can ability really, on this for we without out, us. I to tell So, parse to based you it relative point not as on television sports that certainly any having

Lauren Silberman

the you cadence are throughout quarter? to willing to And comp Great. trend the provide

Ritch Allison

hear I question. your Lauren, sorry, could I'm not

Lauren Silberman

trend throughout quarter? the cadence of Sorry. The comp

Ritch Allison

throughout quarter, No. But can won't we what tell on the but growth by is, strong period I specifics. comment had you I period

Lauren Silberman

you very Thank much. Okay.

Operator

Thank you.

BTIG. from Saleh with Peter question next is Please ahead. go Our

Peter Saleh

about of And I guys database, behavior accelerated first unique loyalty loyalty from Has signing their earlier want about exactly your in in the throughout to guests Thanks. talk terms of that in so that on call. but or what the cadence your the the more retaining XX ask seeing Stu, million maybe year? loyalty up more spending terms you members. recently? conference know the of memberships. you million XX congrats are members discussing pandemic? loyalty I And or and through were loyalty in Can we users had year, you about about guys

Ritch Allison

Hey, in also And certainly But folks beginning Pete. loyalty -- that leveled or saw who we question. the time. we pickup saw at the third pandemic hit, the during loyalty Thanks quarter. were enrollments inactive becoming the off the the We in some program of for fewer over pandemic. interestingly a as exiting saw

of we number overall back the that that buckets. promotions also weeks the higher And piece of program occurred those was boost often. And them that that and customers we to rewards And was look quarter a more each light off compares to run the quarter our of XXXX. ordering and users, pie the to us customers buckets XX% took of our running of course ticket of fact despite in happening continued heavy two And in medium quarter, what then pleased from didn't in XXXX. over at any the third were increase. in So each third in we the also our see third of quarter, in of were as of the the with the those

Peter Saleh

you All thank right, very much.

Operator

Thank you.

from go question Glass next with ahead. Morgan John Stanley. Please Our is

John Glass

a that in you Thanks about sales wasn't the I morning. you maybe the challenges think maybe example, And Stu. how can congratulations, the that for company. the complexity? new is if to couple create do products for some the have has you new Does of have doing? service business. a business? wings, you challenges talk service today? launch you been contributed sure or Or about the how it you reason, make some times about, that Or obviously some think in pizza created opportunities just service and and work-in-progress slipping delays how the for do performance yourself? just talked But unique are Ritch, there of greater and new into question, comment of you saw can this service Good was grade a

Ritch Allison

Sure, John.

business estimated in the service piece, most on the times. we little average a up at beginning significantly, when our First, pandemic, on our slipped definitely of jumped bit the delivery definitely volumes

work good since, the to quarter. the to as and and service have over or great better when than business is the in second We the and we pre-pandemic, food. overall back we've franchisees fact we significant the you gotten own operators where we were deliver increase thanks that pretty about seen, our think which our our third We've of are improved that and

will getting on where where we at I'm minutes, the service XX uniformed CEO So suspect service. delivery as product of satisfied or I'll not we're this experts a me XX are place hear sure because, about to improve got not as to less, until that, talk delivering minutes company, the and we're but making trained I wanting be you with Domino's, that minutes, pizzas XX we're to customer. that always we've and bringing long never

be work-in-progress So, we're going a there. always to

part pleased the products new we've very products. your around of with new launched. Second I'm question

Our wings, well and very our by been customers. pieces specialty have our two new received

us we're we selling wings get wings, because seen hands the today. haven't You all that can promote our on

obviously specialty of in launched are But, those last range. the quarter. third the the top wings specialty mix within business. very pizzas on So terms positive couple of pizza at of performance our just very, weeks of the And then, already end pizzas specialty we've

are and complexity pleased really asked think within These pleased very a also question. add not So great with today, where you stores. -- we do our I operational and

make the of have two complexity on line the store, In the only one how pizzas And specialty actually operational reduced package the didn't given ingredient we in each fact, it. incremental already. we wings that required

John Glass

you. Thank

Operator

Thank you.

from is David question Baird. next with Please go Our Tarantino ahead.

David Tarantino

you elaborate openings, about Hi, for unit laid And years you comments bit could particular, ago. with Ritch, I a out delays XX,XXX a closing. but good in market understand target issues I mentioned also few you in the morning. terms your of was some hoping on potential the international

willing pulled the those I to of on be to much the related about frame might your, up target whether closings? see, to closings expect talk So, you I magnitude how wonder could of you're if you guess, and back the

Ritch Allison

relate concern going the than forward. really much, much David. about more Sure, openings, so It to does closures pace of

our work the of the hitting business, but expect closures certainly I a short-term. seen relative we've Now, higher normal closures will first, in number over to that in XXXX through international those we

markets the real really to back in the similar on has openings, over reopened, XXXX full the permitting of and we've to during seen stores effort closures, those the to also So ramping been up all in the getting world. temporary run construction But that their directed for given those pace XX,XXX issue around them some short-term the that which countries had rate. of gross getting slowed is challenges the pace the just and

reassess we've cause to international medium the in over the strong that and of growth milestone had optimistic very to just that that we'll the milestone. timing to take back that I'm It's timing back So, to the we get reaching a does step XXXX, take it. XX,XXX us unit just that look had business. the the but the long-term, pace of Not of in

David Tarantino

talked of the accelerating And about I opportunities follow-up, the other pace sense. they guess the see of on a companies pandemic. the side guess I potentially lot one of opening, given makes have It

to not the the international ground So I in might that for desirable up your sense in or catch be might possible guess XXXX? comments imply not be a that might lost markets, in

Ritch Allison

a our been are side teams in take we've the a closing of in you restaurant our at those little presented I that, world, business, have we really where side taking are estate a the a other business, look of environment, the opportunities and fact just ago. you business, maintained I while the nuances trailing on if growth all, by David. of businesses evident. way, account take look are and opportunity a of temporary The see down to there quarter had in than No, strong in you And step U.S., the markets markets. that it total, business. in fact I pace U.S. on in were the unit that net bit, if the break back with we of with take a the respect some a much own all that out. back unit But difficult take just still year that and have to time international inside a of higher multiple growth expect international take of at down, to a it accelerating closures, it, real look first to our about starting at bit into break are They're lose is that you a And to we countries you rate you four are it's if it when certainly where to I those very around lot unit us heck have see few U.S. that some just to talk at it quite when operating retail on a consistent our more the openings accelerate wouldn't up because ramp

David Tarantino

Thank very you Great. much.

Operator

you. Thank

from with ahead. is Dennis Our go next question Geiger UBS. Please

Dennis Geiger

really the you. just recent how stickiness new since look a some wondering customer we XQ? talk thank customers Great, that's But acquisition loyalty more about about in on new those trended kind ahead? color the you're bit as how thinking Ritch, good you of you months, Thanks. gave of if could And program.

Ritch Allison

other businesses run inside you two and as each if also seen had I And in of has in business. on -- terms the not surprising, down, and frequency we Dennis. the carryout, on tailwind then we've more customer the more the and what we've a customers during look but Well, is we've a a of lot in cases lot important delivery which often at in our customer of the that's a business retention business, pandemic, and bit look, for it in break of stayed carryout in of as acquisition as is the in if story look carryout boxes, is business, about at order tailwind the also, that you and just if our one Sure, customers We've so, orders our homes not a a is take our talk frequency seen we and business, but delivery what seen little customers. nice much their carryout is business. increased in acquisition, If increase of retention our is we well the different. the delivery a side

come the Domino's. early in of have method. very at service Now, results that than get the you've one seen a been the we TV we've to there that very that on way get seen to we carryout of about planned in third terms had Carside so the frankly, us earlier originally Carside convenient to lot and Delivery, a Domino's talking was quarter reasons could out customer customers And to Delivery rolled in positive that we and have out our and receptivity safe

Dennis Geiger

Ritch. Thanks,

Operator

Thank you.

is with go from question RBC ahead. Please next Our Chris Carril Capital Markets.

Chris Carril

And any did Thanks. around provide in $X.XX the Good of thanks quarter? any how you the change of course the detail value further for $X.XX the question. morning, and and see Can platforms? performed utilization over the platforms you

Ritch Allison

fact, quarter in be we quarter. driver any Chris. than boost more of was thanks, week any important run And an because the the in promotions of QX didn't during probably continued to The platform it time, important $X.XX incredibly in value statement business. the third Hey, and

confidence now, in our shift a our bring ahead. that and I offering. very the you I incremental $X.XX, brought a homepage offer stores looking for right as no see carryout the in a well. can wings at important platform that did, platform. with well, along important, that and could $X.XX, opportunity fact operators that high-quality think types, if also you with value upsell in nice always this and margin thinking at the specialty gears research two that those really believe that as also about our saw tells proposition, opportunity us acquisition. customer our crust customer $X -- high $X.XX for of the our profitable with platform. launch wings has specialty been our of a more only how of gives us for look platforms level can and what's pizzas, now our at very gives of as our us crust the on you'll customer you as that value pizzas happening we And pizza and those will get look $X.XX if of sticking for all large, terms carryout a and with integrate we a forward we which the the that for at the great consumer into research the which great value those I of quarters stimulus how value are types a gave also out and to to we And pizzas new forward we we recession And to three could Those months look there value look them topping $XX.XX And that our you've terrific kind on to sitting today, go again enhance at we're pizzas, across and consumer, into the to taking all on be When then about So a is our which platforms -- those platform. value seen took and a

Chris Carril

Thank you.

Operator

you. Thank

MKM ahead. from Please Levy go Partner. Our with comes next question Brett

Brett Levy

Hey, in new good the of morning. taking Thanks And the role. for luck Stu, best call.

in that a in terms customer Thanks. of investing of we quantification savings what's you how breakdown about You facing in give Would doing where your should are how or of any they're to sales? of to some in And of driving efficiency, terms terms investments. in? started you're initiatives you new discuss care think also, either next

Ritch Allison

Brett. Sure,

the thinking platforms. how technology an at us, for these And and and of of with rollout pleased pivot we're We very interesting actually kind about Domino's. adoption it's innovation are

a So, and doing technology our GPS, get around was operations we've get what that, if our operators and the rapid much run to for stores significantly store better the the frankly to and of that were our and innovation support the going innovation forward, digital the business, And you make to get forward managers. the ultimately have that our there. innovation for Carside be much that's of platforms we ramped you ordering about stores. to for think customers. think efforts We're even also around our a operators volumes, when also I'm bit innovation benefits, of back but facing tools, customers. Certainly to adoption Delivery. a but today we're -- at line managing to incredible driving you on but easier our is And customer stores in about we enhanced than up of excited the to that they've our makes in they customer got our increases going our better that They're to where we our hands put pipeline in quality life XXXX make you as experience them, we're more still what that benefits of good focused of service does resulting innovation aspects our

Operator

right. All

next ahead. is Please from with JPMorgan. question Our John go Ivankoe

John Ivankoe

you. Thank Hi.

question, follow-up and the follow-up a quick. a is Just

that's kind That about fees, by sliding the and that follow-up. to measure of a forward question, little is being that's could international Do important and an intense it the going line delivery specifically think acquisition or way there's bit terms having U.S. me even of party. delivery think a competitive basically think surprises about particularly in cost if third that a markets, And taken service versus as it whether talk fees perhaps of to increased bit whether by mentioned third you the easing? you You customer fixed in for delivery a more So of I inflation. more the put any the intensity getting with we together, is party, intensity little maybe considering, now? some in you think your service go you or opportunity, the scale forward charge being the

Ritch Allison

transparent business those the competitive this what with fee And we Yes, us customers Hi, the on the charged having know government, as service not advantage And for the going but delivery figure getting versus delivery the a fees, fees. service hard a industrious part forward. think don't When is to and John. question free our aggregators, have mark, little being third about if that proposition our in just then this Great. out go delivery. delivery delivery you're you're you low it's you're that at you And then a delivery not and of forever, seeing and been if to enough relatively But we fee be look that paying really fee. is to it's we a time brought says, and the taxes you because ordered to of really of customers. for charged, on key us for most all what click also the taxes see being the what party value might figure have for charge you line a our in that us out we is you. the of you're

there brand. transparent based fees labor lump places, an any $X.XX fact $XX market to got there. additional we're operate is have that is it's market area our we've places fees Certainly think we around out And that our by the be where I got delivery we've to if labor delivery this vary a $X.XX, you continue on in we're going plus. So, tell We the in where rates. not to in on hour do that, we and educating an customers be

fees, is present going our part continue we to be our customers. franchisees But of big So adjust ourselves up down. those to we fees and transparency adjust how do those a to

marketplace John, I in and your part every with in of party intensity, they continue would to in it look was was aggregators second delivery pure pizza have and third that second from say, the but bidders quarter, around the the The is the out competitive very quarter we the it delivery, than question in it a first be any offers not particular third five aggressive their were And we it's the really that in as take set intense in game ago. one the it's competitor against in players, when is different competitive playing play years look party competing at the of aggregators. the advertising. at a game our The we pizza number as

John Ivankoe

you. Thank

Operator

Thank you.

question from Jeffrey Bernstein Barclays. Our is next with

open. is line Your

Jeffrey Bernstein

Thank mean, their operate lot The very new own question much. Stu, your Great. that on you on that a we restaurants the hear role. yours congrats peers I And of outlook. maybe the about pandemic with doing more and maybe of, achieving I guess, levels well the on prior the sales talking heels pre-COVID learnings less EBITDA dollars below are efficiency through at XXX%.

COVID efficiency if more cost of be that's you business Thank sales that well versus wondering, drivers learnings a mean, levels, running any the run being I through of opportunities the maybe after what business, Or greatest just opportunity your the your but ease just your profitability? company terms to enhance think operated is sales prior I'm not when I franchise efficient further flow a Obviously, an of above COVID? to and model, there in about through So unique see kind realistic there? model? you're the are you. franchise you obviously,

Ritch Allison

Most about well. been for driving we've level. time certainly, it very dollar we're talk We profitability the thanks Jeff, focused store time on over that as fairly and the the question. about at transparent all

that COVID. ways absolutely as store also of at we businesses, franchisees, can with then efficiently operate coming out corporate our in So and our looking business we're our work we more

our are I Some earlier, to a in have for By working our talked that cars, us better store maybe utilizing pizzas tools of ultimately the I'll on the GPS those service our a with also part in where stores, know take on are managers technology tools advanced And GPS some We're test the help exactly time. pilots results service. and forecasting drivers at us and inside allows they back turn, where early on that. given about because stores, coming our very of any scheduling there store the drivers example. out cases technology know positive, that service get of the better labor to to run of into back reducing drivers and And aren't our delivery get also that in our our our go two routing, run even stores efficient more to best which how running stores. the labor we at or we results today, them do handing to orders rush operators, associated returns. pre-bag the how costs and and in ready driver get the the stores, coming the while are labor you the that corporate saving drivers minutes into better the that minute, in the once been

talked in costs bit in that out additional of business, you've about to levels operating that coming COVID, will to All forward thrown earlier stores. when the got of the and drive as of we our little flow is on that these continue are look all cash a into but as therefore, of expectation of we pandemic, and higher layered EBITDA efficiency a disarray gets we

Stu Levy

cut as add is though, to of reduce way that what a the thing the quality one we're just providing we And to do costs. won't to

of to as quality You ingredients. providing, we money was that the not that wings, of we a were take we menu, thought cost product the new mentioned, thinking improve little about because launched the out could the of the we

Jeffrey Bernstein

Thank you.

Operator

you. Thank

question Wells with is next Jon ahead. from Tower Our go Please Fargo.

Jon Tower

great. Thanks making time. the Awesome, for

stepped and real you earlier master a the the to prepared in clarification. I support mentioned in company the conversation, that international markets. remarks, had think franchisees Just in quick, Ritch, idea your

during maybe second the the during quarter, in you. the delivery to And store of two, the or have year? the Thank stores was the stepping carryout one, in period? I can even And impacted relative might cost the quarter, then labor up So versus perhaps discuss hoping, side could last of you perhaps that. expand particularly upon business the you labor how level the U.S. business, the side mix curb

Ritch Allison

Thanks, Jon.

international international our on disproportionately by we And markets master these So, or our whole substantially with international shutdown. were cases, view had the have a several that a we with partnership hit support franchisees. either have those to very master on of and that partial We've long-term first had franchisees. a have COVID, in

been with it's and And just relief, have are right for instances long-term. to that with some have so, because for the thing there around leaned decades, international of in where the in over us we franchisees, short-term royalty fee some our for our the do partners

then seen percentage it carryout level. our third is, increase any business were of in side. greeting store technology, going the rack handing with certainly, with store with them been certainly very of a customer we Well, and order Delivery a are also fee question that. those costs, bring into walks costs, pulls a get higher Carside and customer and to back somebody was do without orders mix, to delivery back well and order to handle The mix. running on and using the higher team at into but by member grabbing customer parking the significant it. can Ultimately, is to not couple really when in and when higher the know the a question, delivery of percentage labor in the that part our curb your store labor that associated labor this along what Second basis, dollar per him. we're pizza And also into points to incremental lot, the quickly Certainly, about we've terms able out a on the that ticket as mix finally delivery and order your pre-pandemic. versus delivery we've the quarter we thing And with comes terrific

Jon Tower

the during period? Great, quick of quantify in the relief the one. these royalty thanks. markets provided international or just then fee you franchisees And for you've Can amount one

Ritch Allison

No.

Jon Tower

Okay. Thank you.

Operator

Thank you.

from King and ahead. is Please question with next CL go Our Associates. Todd Brooks

Todd Brooks

share U.S. over half the eight estate but businesses, U.S. question. as pizza the independently units for pandemic And how thoughts about there owned this look wondering an the far months operated? out window, market? that bias thanks in industry, general about I rate out the due on thoughts closures what in survivor in Hey, as you and and market that in enhanced being Thanks. beyond also medium-term now real 'XX growth to unit to maybe your the Ritch, And we're just into competitive the on was opportunities as opportunities? supports are

Ritch Allison

at business. business day, at the the we category. to preface look their it your may it and forward if due the significant compete restaurants turmoil love going further continue come And know very that a of We'd XXXX bit challenges as do none of where to every a has paying if business continue certainly lands, us these to go know independent close And fees And businesses. if to the it to you of through share also where I third operating permanently. just pizza by us opportunity I the independent the We well. But that high the bring I'll predict beverage reality it's pandemic. and their do and don't analysts livelihoods that but to you share with in, are as to and an out and of of in amount restaurant gain want those lot and to relying really of by to industry grow. pizza most has but We of good been independent independent that to feel and have independent fight were for I an not to that mix a dine now restaurants same restaurants were all of may you pizza going and see to operating percentage that on create environment. and party alcohol that love put opportunity close believe aggregators, you into Sure. eat have lot reopen the out to a take proprietors your to is, prognosticators saying, difficult see of for who most shifted to margin a ultimately and If restaurants shakeout is or off-prem

favorable we've looking estate are where and pandemic, corporate store our of that both the real day, opportunities for also, and in opening up teams, and franchisees opportunities some towns shifted are our a in some result cities Our landlord-friendly of opportunity every team, a as more more out it there stores cases, rental environment, terms to for a continue of from potentially on sort rental forward us that to the of for an leases environment more well going some to get operate. renter-friendly for some we as

Stu Levy

to And if to Do that less same where be I determining our development franchisees shifts we modeling take of long-term pretty where and those Do of other a starts may estate rigorously where The be business be to the there. evaluated real take real build look freestanding. with estate do we going the we cetera? been thing be, team analysis opportunities existing what et we something we through have is, gets advantage be to there would of that would a the the we But business stores. want our actually got has opening are to then and want it opportunities at, estate? that way fortunate, real are with working priority. is for value that and pretty And ton want to that's -- detailed add the we

Todd Brooks

both. you, Thank Great.

Operator

Thank you.

Please Charles and Cowen Our with next ahead. Andrew question go is from Company.

Andrew Charles

of more XX.X% there about, the obviously be back-half that to Maybe openings and curious Stu this help growth should gap then center additional Congrats question. growth in two to the two-part and an question, we sales the or rectify you. about jalapeno chain I'm $X about echo thinking Stu, with with good. as It's you being my the pizza. a XX%. Thank going a or said given, there's of of so efficiencies costs extension that sold I potentially system no inefficiencies as mix it's Ritch. chicken Great. phrase I'd million you just on hack And distribution issue very well. know XXXX? wings There's taco can domestic supply if was

you longer-term, is broad for run chain segments see you what your having the margin observation the On settle could percentage chain? And supply supply longer-term? where think out

Stu Levy

supply me thanks Yes, The center in like let effective. I part the pressure openings. the you comment, of all, for there mentioned first and you did questions. was that chain, the extension that just

opened center obviously QX. the So we in new

open to Texas We have we in intend in center QX. a that new

to make, capacity that continuing we're added to investment capacity. than is to also us And that we're need our grow production happy We for means crust because thin and QX. an that we in more

are best from On an grow the we're to dynamic, franchisees. going company is because can as benefit that. interesting profitably, If the we margin provide side, it's value our trying what for do they a to

other our So trying franchisees improvements that in we're take not to when efficiencies advantage. speaking, negatively Generally business, drive they that trying we aren't with so operating impacted. or we're to the share

increase COVID of again During a we the to with which we that little a our sharing of attempting the of course pain. with of saw bit in what couple And was do one were things, franchisees high commodities.

but additional margin increase, it. we So on through were commodity passing not taking

goes So down. comes as the percentage the food up, basket margin

generating at franchisee base. dollars, along passed lower So can to that so be more a but we're margin the percentage savings

was that of one So piece it.

basically all our supplies them, didn't to trying stores, to to of through system the be to then we COVID, can that helps franchisees the we and drive in passing sure again, did profitability were make additional turn, We thing layering should was that second for we feel at The on that overall. we related additional the were cost. costs

other to the of impossible every works more and is for chain efficient, how more for run opportunities? remain effective team ours safe, get efficient supply more opportunities efficiency do it's our And not size efficiency. in a Yes, always our at day single other there that's delivering are So, and franchisees. be have what we

Andrew Charles

Stu. Thanks,

Stu Levy

Sure.

Operator

Thank you.

James Rutherford question next Stephens. Our Please from go ahead. is with

James Rutherford

And earlier, dine that completely you to on have few removed Hey, yes. Thanks the when for that a for states taking the how Domino's? in work. about this likely is about will follow. questions. a A of but country the as I just question course, evolve was will think curious directionally the have more how in capacity, you picture Now, and vaccine, reopens? was restrictions demand there

consumer about have the restrictions? that does certain behavior post-pandemic? what AUVs steady state And just lifted what So normalized you about markets as for you. you observed tell directionally Thank have dominoes

Ritch Allison

course early It's XX% capacity in really our any early cities from James. in purchased that have XX% and it's two. frequency given month flipped of may reopening. observations the us terms And over draw business, for still to the Sure, states or capacity from still cycle of cities and on last to the

some is of I'll more perspective bit, bit acceleration a a in do little think already. I'll things what the little happened that just And, during here been pandemic really have broadly. So were I that kind step place some the have of trends back give a

a positions when pandemic. the we we expect trend are that that we the here ordering to to continue in the with sit the food. space think XX% want pre-pandemic, And today. about grow digital also very around their back digital post-pandemic. off-premise to in go customers expect pre-pandemic during phone, consumption, So to order well-positioned sales to I was accelerated and ordering I how digital trend which There during accelerated customers significantly on toward calling go I I that again. for going to has our to forward. today a think people I that of want was the back. think think we're in off-prem And to down very for are people business delivery some snap in And us carryout, well our don't with I going believe to I of sure. trend those continue think a and the And go see I'm or pandemic. going sit going going But and see in QSR to people space Certainly toward consumption. I restaurant continue an one U.S. strength also movement that and to immediate feel we're are the don't as to

on to of customer acquisition we've during Domino's long-term through loyal that trying and is, into focused here the those So Pizza. what we're COVID, customers opportunity convert given customers to stay taking been

that have results been early the in far, So positive. very

team medium, As share up, less got today, I to forward. up And growing users. we come operators have great a our so the us as serving doing honestly, great And player, and going day. back for mentioned within earlier, category me and got on industry growth retention sit of the even down to continue one room heavy a continue restaurant and given is, our much they'll we've franchisees customers job than our and share that do the that job really, even about am in to reopening for every a light my frequency challenge those us I'm upside number the we've about concerned restaurants far believe across and we for the execution to I ahead and is is

James Rutherford

you Thank the thoughts. Excellent. for

Operator

Jared you. Thank And our question Goldman comes Garber Sachs. Please from go last with ahead.

Jared Garber

commentary little the asked Good morning. our but seeing trending on we especially XXXX? heard answered, Thanks. news shape of call and commentary. a investment the or China how how more versus Obviously, is on wanted any color get today strategic by color to business Thanks. bit great have on you're last timing XX,XXX the the maybe questions the Thanks of some Most there, up of to just units of the quarter color and Really for the there opportunity been all maybe. the today. on the

Ritch Allison

we've of got were a our in of using contactless of unit some a in growth really first, have really the lot the growth XXXX, master of lot franchisee, team Jared. in in over been in markets growth has the our and of the the world. U.S. in at China while that Dash. story future them. there methods one Thanks, slowdown also management the of China China pandemic our really world, some around a very success around business service architects back there when got year over the around with place we're beginning obviously was And terrific of had a strong we've the China not definitely our is hit and year. terrific this China -- We've China. optimism Sales been leaders China the

in there point will business. great to but be China, they only Pizza I future leaders they've not on And, will stepped in expect as also Domino's thought up where largest have the the a look forward China the the be be I that second business our U.S. So results, behind world delivered in

Jared Garber

Thank you.

Operator

to I Allison our session for Thank remarks. like the Q&A for turn concludes And closing Ritch call this his to today. you. back would

Ritch Allison

forward Thank on XXth, the when November investor joining with our Q&A you. to for morning. And we thanks host us on look speaking to everybody, call again you this event. We virtual

to results. stay to a full safe you course, XXXX get So together fourth we to hope And next until chance get of I and year hope and just again month's month. of and we'll talk you then, all back we'll in our all you to quarter our discuss of And healthy we'll talk time. then, a in February,

Operator

ladies and you, gentlemen, today's participating Thank program. for in

disconnect. now may You