Pizza company is talking with other aggregators besides Uber and sees a $1 billion market
Domino’s Pizza Inc.’s deal with third-party delivery service Uber contributed about 3% of U.S. sales in 2024, and the company is looking at expanding that platform, executives said Monday.
Russell Weiner, CEO of the Ann Arbor, Mich.-based Domino’s, which released earnings for fiscal 2024 and the fourth quarter ended Dec. 29, said the consumer environment was pressured in year.
“As we look ahead to 2025,” Weiner said, “we believe the combination of pressured consumer spending and a value-driven QSR marketplace will continue. In these challenging times, the best measure of a company's success will be the market share gains it achieves.”
Weiner, who highlighted Domino’s “Hungry for MORE” strategy, announced plans to launch at least two new products in 2025. In 2024, the company introduced New York Style Pizza and the Mac and Cheese Pasta. Analyst Mark Kalinowski said Parmesan Stuffed Crust Pizza may be introduced in March.
Weiner said the partnership with Uber Eats contributed 3% of U.S. sales in 2024, and the company aims to further penetrate the aggregator channel in 2025.
Negotiations with additional platforms are underway, targeting a $1 billion incremental sales opportunity over time.
“In 2025, we know that aggregators are a meaningful sales-driving opportunity for us, and we have yet to join the largest aggregator platform in the U.S.,” Weiner said. “We've extended our exclusivity arrangement with Uber until May 1. In the meantime, we've begun negotiations with additional aggregator partners and have the ability to begin piloting with other partners in a small number of stores.”
Domino’s has also updated its kitchen equipment. It has rolled out 1,600 dough stretching machines across the United States, “more than a 50% increase from where we were at the end of Q3,” Weiner said. He added that demand for the equipment is high.
“In 2025, Domino's will give customers what they are demanding from their QSR brands: more value,” Weiner said. “We have a strong slate of initiatives, primed and ready to go. You can expect a similar cadence of Boost Weeks and value-driving promotions as we believe it's going to be another challenging year ahead in the industry.”
Results for the 2024 financial year were difficult, Sandeep Reddy, Domino’s chief financial officer said.
“Our full year 2024 financial results were impacted by a more challenging backdrop than we had initially anticipated,” Reddy said.
For the fourth quarter ended Dec. 29, Domino’s net income was $169.4 million, or $4.89 per share, compared to $157.3 million, or $4.48 a share, in the prior-year period. Revenues were $1.444 billion, compared to $1.403 billion the same quarter last year.
U.S. same-store sales grew of 0.4% for the fourth quarter and 3.2% for fiscal 2024. international same-store sales (excluding foreign currency impact) grew 2.7% for the fourth quarter and 1.6% for fiscal 2024, the company said.
Domino’s, founded in 1960, has 21,366 locations in more than 90 markets.
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