Domino’s Pivots to Carryout for Good Reason

Oct 18, 2022 | Corporate Insights, No Bull Economics

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The key takeaway from Domino’s 3Q22 results is that its sales are beginning to improve, with sequential growth over the last couple of quarters. After posting extremely strong performance during covid, the chain’s positioning began to suffer from a rebound in consumer demand for dine-in aggravated by a shortage of delivery drivers. More recently, inflation has added to the cost of delivery (gas & labor) while also putting pressure on the chain’s core lower-income demo which is ordinarily attracted to the great price pizza orders provide for larger groups. For this reason, Domino’s has been pushing its carryout service which is unaffected by rising delivery costs, thus helping the chain to keep prices low in this sales channel. Notably, Domino’s 3Q22 carryout comps increased +19.6% (+35% on a 3-year stack basis). However, inflation has not left Domino’s carryout business untouched and the chain plans to increase the pricing of its carryout mix-and-match deal from $5.99 to $6.99 on October 17.    

DPZ Financials Graph
DPZ Financials Graph

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