Domino's Pizza (DPZ) Offers Summer Discounts to Boost Sales

Domino's Pizza, Inc. DPZ is offering a 50% discount on all menu-priced pizza. The offer is valid on all online orders placed from Jul 9 through Jul 15. Customers can avail the discount by placing order through the company’s digital ordering channels, including Domino's website as well as its ordering apps on iPad, iPhone, Android, Windows Phone 8 and Kindle Fire.

This apart, Domino’s continues boosting sales through regular limited time offers (LTO). In 2017, the company reported global retail sales of $12.2 billion, which comprises more than $5.9 billion sales from the United States and over $6.3 billion sales internationally. Moreover, its strong brand positioning through the company’s versatile promotions ensures on time delivery of high quality fresh pizza. Notably, the pizza category is a fast growing segment in the U.S. quick-service restaurant industry.

Digital Initiatives Bode Well

Domino's digital leadership is helping the company to expand its brand presence in the domestic market as well as overseas. In fact, the company generates more than 60% of its global sales though digital channels. Also, Domino’s is investing heavily in technology-driven initiatives like digital ordering to boost sales. In 2017, the company’s AnyWare suite of ordering platforms that allow customers to order from various ordering apps and platforms such as Google Home, Facebook Messenger, Apple Watch, Amazon Echo, Twitter and via a Pizza emoji on text, grew significantly.

Meanwhile, its digital loyalty program — Piece of the Pie Rewards — continues to contribute significantly toward increase in traffic. The extended ways to order a pizza has thus kept Domino’s in the forefront of digital ordering and customer convenience.

These efforts have aided the company’s shares to surge by 32.6% in the past six months, against the industry’s decline of 4.6%.

Bottom Line

Domino's revenues have surpassed the Zacks Consensus Estimate in five of the trailing six quarters mainly on the back of positive comps growth, digital ordering system, re-imaging and other sales initiatives. We believe this latest promotional offer should further entice customers and boost top-line growth.

Domino’s currently has a Zacks Rank #3 (Hold).

Key Picks

Better-ranked stocks worth considering in the same space include Carrols Restaurant Group, Inc. TAST, Papa Murphy's Holdings, Inc. FRSH and Wingstop Inc. WING. All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Carrols Restaurant, Papa Murphy's and Wingstop earnings for 2018 are expected to grow a respective 70%, 153.3% and 13.5% on a year-over-year basis.

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