:max_bytes(150000):strip_icc()/GettyImages-2223516728-ddaf3e8455fe4a60bc46a06012de4c49.jpg "Stuffed-Crust Pizza Demand Is Boosting Domino’s Sales, and Its Stock")
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Key Takeaways
- Domino’s posted quarterly earnings that topped analysts’ estimates, thanks in part to promotions and demand for its stuffed-crust pizza.
- Domino’s also announced a rebranding last week, including a new jingle by Grammy-nominated singer Shaboozey.
There’s a cheesy reason for Domino’s Pizza’s better-than-expected earnings.
The pizza delivery giant said the popularity of its stuffed-crust pizza and promotions helped drive its strong quarterly results.
Domino’s (DPZ) reported earnings per share of $4.08 for the third quarter on revenue that rose 6.2% year-over-year to $1.15 billion. Both figures were ahead of analysts’ estimates compiled by Visible Alpha, with CEO Russell Weiner attributing growth in both the company’s delivery and carryout businesses in part to its “stuffed crust pizza product innovation.”
Why This Matters for Investors
Strong sales at popular fast-food chains like Domino’s could be taken as a positive sign for consumer spending and the broader economy.
Shares of Domino’s climbed close to 4% in recent trading following the news, which also comes about a week after Domino’s announced a brand refresh to target younger audiences, featuring changes in its look and a jingle by Grammy-nominated singer Shaboozey.
With Tuesday’s gains, shares of Domino’s are back in positive territory for the year.
