Dominos’ Pizza Inc. (DPZ) reported Tuesday both a sales and profit increase for the third quarter, reports the Wall Street Journal, citing the company’s new recipe, menu innovation and international growth as its primary drivers for success. The company also managed to trump its primary competitor, Pizza Hut.
Domino’s Pizza Reports 3rd Quarter Success
Domino’s Pizza’s profit went up 33% in the fiscal third quarter. Sales rose 8.1% compared to 7% the previous year. Domino’s also opened 228 new stores internationally. Of the success of the pizza company’s new recipe, the Wall Street Journal writes, “Domino’s sales at U.S. restaurants that have been open at least a year rose 3%, on top of the 12% growth a year ago, proving that the initial sales boost from the debut of its new pizza recipe in December 2009 has staying power.” According to the Wall Street Journal, “By contrast, Yum Brands Inc.‘s Pizza Hut chain saw a 3% decline in U.S. same-store sales during its third quarter.” One of the differences the Wall Street Journal cites is that Domino’s Pizza is largely franchised, so while restaurants across the board are facing the burden of rising costs, Domino’s Pizza as a company is insulated.
A Few Words From Domino’s Pizza CEO Patrick Doyle
Patrick Doyle, Domino’s Pizza CEO, explained that the company has been working hard to reinvent its brand and is encouraged by the growth, saying “This quarter is yet another example of how increasing loyalty from our customers is driving terrific results around the world.” The international sector of its business is becoming of increasing importance. Doyle notes “We’re right at that point that international business is passing U.S. in terms of size. It’s growing faster than the U.S. and that’s a trend that’s going to continue.”