DPZ - Earnings call transcript Q4 2020

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Operator

Good morning, ladies and gentlemen. And welcome to the Domino's Pizza Incorporated Fourth Quarter Year End 2020 Earnings Webcast. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions we will follow at that time. [Operator Instructions] As a reminder, this conference call is being recorded. to Chris conference Stuart Brandon, like host to Levy. now speaker, – Director, would turn over the your I Investor Relations, Please go ahead.

Chris Brandon

joining commentary fourth Financial quarter And Thank full and year today Nora. Chief morning, call and Executive the us will Officer, Today's for Allison; feature regarding our it, Levy. conversation Chief for Officer, of Appreciate results Stu XXXX. our from good you everyone. Rich

Both and all is remind call more investor discussed for in our to to materially could members are listen-only of a those factors differ documents our primarily information, the media forward-looking everyone statements our risk to ask with or this As in earnings audience, filings comments today. mode. available And forecasts. please trends on the apply also from this our the refer XX-K for of SEC. to the others the want in website. be call our morning's I I and on Actual release results that

In release to replay call to want you ask one Levy. being our for and website. is reconciliations you to we, our on Officer, so conference please. webcast Stu our always, question over recorded - you. on one-part addition, Thank analysts, call. this that our measures also do A find With X-K to turn Chief Today's only like of be the today's may via coverage earnings the to would call, if that, you non-GAAP financial is and call I'd Financial being request of as disclosures accommodate to encourage refer all to best to please today, referenced we

Stu Levy

full results Overall, excited good and year morning, by XXXX, our ongoing you challenges the and very presented everyone. COVID-XX. we today. Thanks, with discuss global strong quarter to QX a Chris. despite And We're fourth had annual

week which typically this into Eve Year's everyone our New included quarter year, remind days. extra Year's the Both sales once would which first and numbers, fourth are Before of included major we that again an also jump I New like to Day.

XX in a have of release consisted XXXX. We XXXX how we this an and our adjusted out consists week XX-week the our year in been three, of the XXXX, fourth quarters Typically, weeks. fourth the But this time or of filed In fiscal quarter. quarter is results fiscal X our depending XX-week extra affecting year impact item every earnings on as this in calendar has morning, happen The will an week our years, next of comparability. falls. X additional

our EPS strong Overall, full year. results. $X.XX franchisees around our to to Turning the team of a leading results, diluted $XX.XX and for generated QX members for and the operating world

$XX.XX diluted for was and extra our as Our fiscal year, QX week the EPS, year. $X.XX full for in adjusted the for

on additional of to some compared earnings. components QX global XXXX. detail grew Here's In as our QX, XX.X% the retail sales

As a reminder, break you sales I'll both which moment. and growth, unit includes a in comp retail for growth global down growth

the extra extra by sales grew retail and positive currency, global by dollar. excluding week and also weaker QX retail global Our a foreign benefited the the When of in impact were XX%. week sales

sales growth. For the our excluding the foreign When and sales negative global the our down week global currency, retail sales impact grew full global year, extra retail retail of XX.X%. XX.X%. grew Breaking

for XX.X% excluding grew the week, full the sales full US year. retail sales in year. for during extra retail When QX grew the QX XX% and US Our XX.X% XX.X% and

X.X% for year. year. for X.X% the international XX.X% the international the retail retail for week the Our and during X.X% QX sales QX full and excluding extra currency, full grew impact of When sales and foreign grew

same-store sales restrictions, more see a in operating which units, closures reduction sequentially detail an including and in in and During business, temporary international positive store performance QX, stronger in momentarily. increase discuss other we to momentum which continued contributed net our I'll to

to comps. Turning

with years prior of remarkable restaurant Same we XX.X% store store grew international comps, broader lead positive XX straight the sales And in our in the business both quarters X.X%, US of quarters quarter, the of or XX of lapping During positive increase achievements. X.X%. to increase and international year US prior a continued over grew truly rolling QX, a industry, for sales X.X%. same XXX year comparable consecutive sales

the As sales the US up store extra driven often by in our by our ticket The ticket delivery driven increased in Shifting higher were quarter by two ticket by count. not our comp, to both Within a franchise and franchisees US company-owned the was an Similar driven added international US with higher reminder, week. and driven mix, in an a down which net store is both growth and comes quarter, stores was growth. mix. growth of transparent was X.X%. and a fourth delivery ticket Breaking and of count in associated XX.X% items delivery was quarter unit by fee. same order The closures. affected order comp our US that consisting item business a our XXX openings growth. the this per growth a XXX We healthy higher the mix X.X% business, stores mix, our to comp that increase while during

year, franchisees we net XXX and opened stores. full For US the our

business openings international net during XX comprised QX, and store XXX XXX added Our closures. stores of

and and franchisees growth We're XXX year, In in total, our the units international QX. the continue pleased For XXXX. in to during encouraged globally very with added pandemic strong we our particularly our ability to XXX stores. net by stores opened grow full we

in still some forward. which permitting, moving construction do will to markets, continue stores monitor face including and we certain challenges opening delays we However, in

prior revenues million estimated from year. year remaining XX.X% fourth Regarding were year million. week an increase revenues million and margins. XX.X% for and was operating Total billion revenues extra from $XX for The the and The the increased were $X.X prior royalty $X.X the $XXX rates sales, million or revenues global Total $XXX quarter driven impacted quarter. positively were revenues higher up our up billion or were drove business. areas in impacted higher full by royalty to XXXX. year for currency million to QX compared by $X.X as in revenues in our all negatively turn across compared QX as by by retail $X.X revenues exchange the and foreign XXXX, of international our Changes which

XX.X% due Our percent as revenues of by higher partially impacted franchise COVID-XX margin to XX.X% of negatively the US investments in revenue revenues was a consolidated offset made from QX our decreased and XXXX to QX from related operating costs. by percent to business, a store as primarily increased labor from margin higher XX.X% to Company-owned pandemic. in COVID-related XXXX, XX.X%

and expenses driven of them XXXX, QX for we operating expenses. paid revenue pandemic. million bonus As increased efficiencies contributions approximately XX.X% announced reduced front to to to XXXX. operating fuel special as in we chain December G&A XXXX, Supply by in margin workers QX the in $XX QX a throughout line XXXX increased their XX.X% from a percent compared as of our thank to

to partially balance this a expenses approximately million by offset For to as performance a the year. from increase based year. variable that XXXX. this the professional G&A increased was estimate our million an Net resulting result related of compensation interest extra increase full $X estimate lower week expense was million quarter We this fees compared of travel debt QX borrowing rate. $XX year, the driven extra by $X million increase lower a The our weighted $X remaining that average by We expense and and in was higher was by increase incurred higher offset The week average remaining recapitalization as compared as primarily were these million, transaction expenses. and of XXXX partially of the weighted was prior to year. driven $XXX approximately

Our on to QX X. QX to weighted borrowing average as due compared the in to outstanding XXXX interest QX X.X% the XXXX in decreased debt rates XXXX. lower rate X% from

tax QX on positive reported compared equity included as The in to point effective XXXX. was tax point the compared rate X.X in XXXX. to positive compensation Our as QX XX.X% a percentage QX X.X impact impact effective XX.X% from in based a reported percentage XXXX tax benefits rate for quarter

equity-based rate our these quarter When up volatility of elements, fourth $XX.X expect effective all We benefits. these to you million to our was combine income tax see XXXX. in net continued tax compensation QX or related over XX.X%

full affecting income our million operating positively which impacted up comparability went the and X% or earnings year We to estimate an quarter of $XX for is sales additional item due leverage, $XX.X the associated fourth the included the net release. XXXX. year, as XXrd the our full XX. million by in over net For the and week in week that income

prior $X.XX versus was Our an diluted XX.X%. EPS $X.XX in increase year, of the in QX

of notably, QX increase $X.XX in versus QX adjusted adjusted results that Breaking XX.X%. in as $X.XX $X.XX. down operating our an improved Our XXXX, by diluted EPS EPS Most bit. as $X.XX us increase benefited diluted of was a

balances Our net higher Higher resulting debt I'll share repurchases interest XXXX, from by expense, on a by moment. more driven lower average diluted $X.XX. during benefits as provide count, us by $X.XX. repurchases based benefited share I tax mentioned lower share in primarily the detail finally, on $X.XX. And rate, earlier, negatively equity us impacted by our us I primarily impacted previously, compensation, tax negatively mentioned from resulting higher effective

diluted of the EPS in versus year, the $X.XX year, increase was an our For $XX.XX full prior XX.X%.

$X.XX year was XXXX, $XX.XX adjusted diluted Our increase in Shifting as cash. of for diluted of an to as full versus EPS XX.X%. adjusted the EPS

Our throughout continued economic and free generate model cash significant the flow remains quarter. it to strong,

for $XXX cash million. XXXX, year by million. full provided deducting of generated After we During flow of we cash generated activities free operating approximately approximately net $XXX CapEx,

approximately technology primarily our in on supply on and initiatives. Regarding spent chain CapEx capital our we expenditures, million XXXX, $XX centers

$X.XX During year-to-date repurchases Board per which approximately for $XXX $XX repurchase remaining our as saw QX repurchased incremental XXX also XXXX. pleased earnings share $XXX new also XXXX to authorization total our $X has under QX, million. of to XX,XXX shares the has Subsequently, morning's for existing Directors retired average, in shares XXX, replaced Related we're repurchases, million this to on also billion release, we've million announce and a we share repurchased program, that, bringing our an in you approved program. our or

XXXX we $XXX two payments, bringing million. during in to to shareholders the payments Additionally, returned million our of dividend $XX total quarterly $X.XX QX, our form dividend

$X.XX Directors per add of XX% dividends, quarterly As $XXX you and the over of XXXX, to shareholders share into previous returned share, paid to declared more cumulative XX, that million we on dividend. repurchases our is than has of a to excited increase dividend in XXXX. quarter's the an move impact be the Board March When we announce quarterly we're that

the done have in results, we impact like previous COVID-XX on pandemic you as financial up walk QX wrapping the to update, quarters. through of the I'd Before our

our for QX, members During team communities for impact compensation the our from sick million. cleaning and equipment, and safety pay estimated $X and franchisees was total and enhanced support other our

As $X that as CapEx revenues our $XXX XXXX innovation, will ahead, currency X.X% we like quarter-to-quarter. X.X% US we that provide in investments chain around in We as currently well including in business, that could levels, would mid be to anticipate the longer-range look million, volatility royalty communicated our growing to project within compared in XXXX system strategically stores basket foreign on to We approximately a outlook new and we invest food positive do we capacity. million as be items XXXX. a as supply gross you range the and we technology, We have outlook. to estimate with remind compared to expect XXXX of $X you up continue impact as to million store to our January, that some

other We as depending the vary affects performance of Keep our G&A million. up can based $XXX to our advertising. mind our plan, store range $XXX that down as performance in such variable on, well be expense, as corporate as expect in expense that among things, to other G&A compensation or expense million versus areas

as year, in appropriate the addition, global In impact, community. to our unit investment X% such providing also announced into and would net additional again of this to performance to thank for members now joining reason over closely earnings for remain in outlook to have the team is excluding Thank In And currency we to franchisees of very uncertain continue anticipate to They're the the I'll three that we to turn business broader and monitor and quarter the if these environment able do will two XX% calls, growth, Ritch. be these brand we finally, We shape during fourth meaningful visibility our generate our results. given to incredible I outlook continued growth. and morning's its take it measures we you and And our the when release, X% X% these it aspects all foreign good want a each for today. strong the of operations business to closing, Obviously, global year the minute our around intend sales world. financially. times. retail call I in

Ritch Allison

all thanks XXth certainly optimism us to no world. on the call year XXXX milestone our Stu. and Domino's it was And year a year the you brand of was plans the joining Thanks, and the to to business, grow like for entered year this a It's at with Domino's. our franchisees in for continue other. We morning. solid great around and us

and globe, we challenging swept a COVID-XX to quickly to new operating the more environment. forced As across were adapt

many strength people logo team not around confronted Throughout we really team stayed like our my our issues could be with shareholders. am franchisees, so we I I core XXXX. so to and led with And stakeholders. And rose social to and continue other grateful that world the focused thousands the The who our As ignored. our are also Domino's we that and culture results were Those our year, justice committed and delivered challenges, despite makes hundreds team customers, out the around exceptional determination year communities and with the our the the on franchisees the of members, wear the values. during profound of deal Domino's no pandemic, our members brought unique. occasion for the every day. our

some across like do on on commentary quarter, a of this and businesses. I'll our look total, US few reflections always, share I'd I'll things the on we some our but most and of beyond, performance forward discuss as that, we'll some then morning. XXXX things call and into during And both following on international Q&A. Now to the I'll take the focused as focus XXXX we my our in are

map road morning, let's our started get as that with business. with So US our for the

through Over the our foundation that us customers, along built and safe, was ever. car and in critical customers This never earn that ways their side experience hard to for as as our took XXXX. they as of allowed to customers We service back the them and trust their ordered leading as of half focused with our on commitment connect such families. contactless ever We and confident and remain trust execute XXXX, quality a when past delivery, products, industry Domino's our delivery very safe and from unique of to our as XX Domino's. In menu our trust to we options, expanding years, quality and worked new in lightly, innovations our ensuring communicate more customers three with with launches delivery we've gave trust the to high felt image, value. on product

now taco sauces and our wings pizzas new been chicken And Our are specialty and pizzas. cheeseburger by embraced our have among our new enthusiastically customers. best-selling

in just Now options our delivery menu wasn't limited or XXXX. to innovation

our the and number delivered needed in value are disciplined technology cuttable demand remain with GPS for driver our to we're innovations our operations stores. efficiency, it speed, to innovations of Those our customers AI-enabled most. also to match in customers. dedicated allowing forecasting all enhanced continue technology franchisees, and when to stores. our on to designed These and capacity a and make-line along our better with our our increase We, and serve us known also really included tracking, better tools, accuracy the We

part been for have Domino's platforms experience X.XX the reliable, and X.XX years. important many of a core brand Our

the about base. frequency new the of customer loyalty of story existing the While XXXX brand year, our over more last we brought and was the into customers certainly

running loyalty any XXXX. of during items. they among loyalty over XX Our aggressive the often. specifically customers have did, program when Piece quarters our program the they in saw promotions also our members. more achieved loyalty Notably, ordered ordered more long last And more without we XX three we in Rewards our now growth active members million And year-over-year Pie continued that million, of week of our We program.

and franchisees for driver in in new in the to again with resulting of despite our permitting stores was store us for pandemic, We the growth and the both new and year. XXX associated challenges once Now significant a our continued invest existing, during US. growth construction businesses, net the

If last you X we've look stores X back over years, the X,XXX the in closed last and XX over opened the new US nearly than have fewer years. we

to on in in growth on franchisees, presented budget. COVID-XX pandemic. crust also chain the the Texas challenges in invest New supply Carolina of centers And in We production And added in March. a our South support our business opening December. the opened Katy, in Jersey. we in our and by XXXX, chain new to that's in line center to existing two September, time continued US despite Edison, We opened We Columbia, supply thin

donate also million safety and of responding natural national we processes hiring need, and XX in of million our pay the and enhanced may to years the food the wages, throughout members that Hospital. franchisees We our ensure communities invested our working and of And support to nearly the chain to including provide well-being bonuses frontline Children's to our XX chain Jude Jude recognizing in December. We been to invested workers Franchisee million our raised with partnering frontline an XXXX. jobs Research we during Black for corporate alone. store in XXXX, raise the to for responders, to US, over by and and our supply workers $X a in members disasters enhanced Domino's $X St. getting from first communities million benefits XX,XXX partnering the in designed who in pandemic, next team the safety corporate have campaign their in equipment establish need, to challenges theirs, in St. franchisees $XX hourly in unique to launching and with families team Fund, million throughout store XXXX million month invested sick $XX and supply the people franchisees committing displaced and black Opportunity slices paid and to to including We $XXX

highlight every most ahead each to in a not business, progress in our to will new little not focus of Now continue And day. few US I'll areas to work as areas. a And and surprisingly, looking these we brand, be striving XXXX get will you. better a news

will driving markets, fortress we delivery First, lower costs, continue and our to better economics for service, carryout incremental and faster consistent traffic. more drivers

Fortressing to drive our store continue in XXXX, company including overall growth markets. owned into will

to We will continue product in deliver innovation new XXXX.

We will advertising with excited Progress new begin world-class In as our And we're to continue advertising. Work produce to agency. our relationship

to to key team our door these times, Value We're ever, value out business. technology fresher innovation pizza position and with up communications. change down within segment. within accuracy invest doubling are our through on continue the pizzas our experiences, ramping XXXX. the drive will and with in than uncertain matters. and reliably won't our with to enable leadership ability stores, efficiency corporate before getting improve our value with stores. of in always support maintaining technology, QSR inside XXXX, is And focus to focus ever service More Americans work more that We hotter, in and to training us, customers in we customer our for unquestioned out committed great to We're our speed, of than to many store members' a economic

our our stores enhancing hourly team centers, invest many member corporate our to chain and in continue benefits. will team supply frontline increasing We wages and members across in markets

comprehensive a will impact. We our environmental taking look at also be

that with obsessed and will with ready. But initiative we higher next science-based, franchisee figure always, the shared Stu will the final number is absolutely set profitability. our expect estimate January. company's years, the it to targets you last we month. share accordance in And in we level than as obsessed, three estimate you one change, with time-bound to Within to will process the when we with commitments initial XXXX shared you store the EBITDA Stu do that total contribution be reduce science-based to climate remain with

my any While continue labor we our rise and also tight across corporate franchisees, and store some unemployment such enterprise focused are intense we country, these in costs recognize our associated many and category, team the are But at returns under level bring remain and just our the stores country. levels cash-on-cash intensely we drive on our local our as Despite across believe remain of rent recognize I to profitability and for this cost of and pressure. markets. helping exceeds Fixed of efficiency higher and to the level challenges, wages insurance added and franchisees as we corporate for markets player profitability overall that pressure.

the back on XXth As time. we on and US continue are growth our positive of and $X we first very business. I'm for performance. fourth very am with US year, I in surpassed quarter sales happy the US playing consecutive our in our quarter well full confident game the to We sales positioned the retail look billion I long achieved store same that

Now I'm to to International. move on going

I'm the XX straight reported positive full We years, when our as for fourth business, marked XXXth that the years. doubt our year. we quarter. run quarterly in strongest stores struck the full net our master that comp and to delivered quarter reopened That's in COVID particularly And an in we've the During continued, XXX early the and opening four XXX recovery pandemic in the pleased franchisees incredible quarter, continued invest seemed year. in stores net

that our XXXX. Now that this closures more it we around we closed stores unit in in no level markets There globe. when built is franchisees back that about temporarily master is have many you the achievement. X,XXX remarkable QX, the consider truly highlights in terrific had a economics And had question

number struggled previously than would choices pandemic. in to than In environment in underperforming a fact, formats by of units new a admittedly strategic from normally you driven the see XXX reopening including rather operating several had Domino in the them over after have typical some year. that close would with units, was we markets This

world across I master ramp-up our So international franchisees the dramatically for their master from to franchisees' look over leaned really And the not US partnership. throughout our about have practices Domino's best year. help We sharing And This demonstrated and our without in, unit our want we global our when pandemic. forward, optimistic manage throughout And their to this across very international the year the to the thank the engagement peers of growth all could help COVID of the I the power am system. through team I communication to ability truly business. to responded so increased partners effectively system. level

love million in by stores XX We time this completed XXXX welcoming market. investment we partner, over net accelerating to in the in DASH China $XX grew market a there team in We Domino's sales to important very subsequent I'd We in opened for which this a opened growth the few very the million our XX%, were $XX XXXX master the of with in first and and franchise Now pleased family. brands, also highlights. QX investment, Croatia, retail year. share to invest

that excited much to XXX XXXX, story of we I team terrific am with growth Domino's for ever Japan significant approaching around stores themselves and closures than closures. XXX milestone fast with XXX deeply fewer reports, XX% potential Zealand with growth in world, growth. sales And was I'd closures; few saw thank France, others optimistic XXX me, COVID-driven the in the than Spain, year stores Germany the the retail growth. bounce passing investors. temporary about with with back we to the stores where of more sales excuse over more Panama success reopen teams to many for We potential incredible China. an to a are on are to store in also - future throughout the have their like that and India, over management XXXX. latest our incredibly are that New hard have is and now XX%, in following another Mexico, XXX international along position pushed worked retail outstanding market hard markets, partner net the store Based and temporary for from

this master as look our business, recovery with we I growth XXXX, Jubilant And stores India a international XX look Now partner, forward in year, most our franchise when their the we earlier strategic in closures into potential recent business. mention. business net After remain specific reported at about The store committed. Foodworks, Combined dramatically the are in some international optimistic accelerated the franchisees quarter. the its our unit long-term are support our is to this strong our sharing recipe globe, there, master potential. very best growth around our take of opportunity have we corporate and practice and economics with to full deserves

in we when team new At are once our profitable the remain best of proved the Domino's beyond. be our our the a over for model. served and but look to me driven repurchase as growth to like none restaurant track ability announced partners our XXXX growth, and brand this as well in confidence So is X% to the our of great shareholders. of to sales Domino's me $X sure Domino's, diligently disciplined ahead who three what will focused release, we in communities the morning's our grow franchisees, demonstrated to closing, that new XXXX a like foundation new look XXXX by other, long again we year the our in and business. a but we retail am confidence for global our well as exactly like other. This was to members, gives global have outlook none X% members they And operating brand where aren't us This I program. in proud a is team our year model franchise deal continue will a and net and of we'll two That long-term. get or XXXX, unit in our XX% growth we X% there, delivering record billion will growth share normal on customers, our to

to our you battled to every And for this US. members. serve winter continued franchise also the And leave take XXXX, we questions. not to be your as I'll each perseverance in day. recent storms COVID with and that's your and just morning thank with you my XXXX your I the partners in efforts happy but heartfelt am Stu So across and and proud I team remarks will that, for a

Operator

of Instructions] first Your question comes line the [Operator with Oppenheimer. Bittner from Brian

open. line Your is

Brian Bittner

about outlook. X% Thanks. But you'll to Appreciate specifically this two all apply reinstallment Ritch. to be as I really Stu. about three unprecedented that XXXX growth, side, a not talking seemed does XXXX? the remarks. morning, Good we least lapping growth trends may this sales and morning, retail in year, sales And appreciate as to had you And be unit thinking you're step-up nice the an the At should to on in X% think year also and of normal. X% are unit how like fourth the high quarter. situation XX% when growth, visibility that from a it I Good the understand view you

any Thank color So helpful? be you. would additional

Ritch Allison

other were see US to had unit the your a a fundamental question. preliminary And And that some of challenges that store we to out the for and getting in Thanks, significant specifically the unit demand to was of store in in due final for have construction economics issues. where look the the year we two permitting there fourth international our saw just year you to US course level a outlook the reality the business. Stu throughout and on pent-up there we've three the up to growth, as expect the stores opened numbers Sure. of or both we question that published, level lot and the But it Brian. appreciate new be shared at business momentum I building better. at higher. month. numbers, look. really EBITDA year, is been growth And never as quarter tabulate last the the we business the XXX,XXX pleased least But published we is

So business. terrific in economics the

store relates in it units some And well global gave international and we were in us. a the in the fortressing at the to headwind quarter, that retail tailwind that the around had you in sales impact, on us as was is as very, significant closed, to second that approach you growth temporary closures very US, back look the international still were which Our when up all business the then. markets it back on COVID we while US side working actually number, for a retail our had X,XXX then sales in where the know, of

this new look and that is reflected So that we're Brian, published optimistic, as we in optimism forward, we morning. that outlook

Operator

question line from Your comes the Senatore of Bernstein. Sara with next

line open. is Your

Sara Senatore

the Thank competitive US wanted kind of to was you. I about ask background. interested. I

big independence. tailwind, competitors including You in customers. about always and said and consolidation questions was existing of you're that my talking know category the you business, of orders and I really a saw that spend based would from star But a then guess both maybe independents. XXXX about I your [ph] the be increased get nice on lot sense whole what

share to that we're a now a you. that you just shifts to the from less about an I or what and you rising wondering kind look if coming like? could dynamics bit And Domino's about talk about sense Thank the traffic of year of aggregate where was the into going a intra-segment tide. pandemic, more was maybe and have better if maybe So

Ritch Allison

we And answer country. our of break question, I as down I'll - Sara. Thanks, each the across the what I'll out your Sure. across run bit two businesses a of it boxes that

most the not order business, across delivery and in saw counts both the tended and Domino's in in strong for category, Pizza, we start a the the you growth just delivery frankly, in the across brought delivery business growth also if certainly, business, ticket pizzas. categories. that customers during And but So more with order to year, tailwind pandemic as

I the frequency in in saw we more also loyalty from prepared us. Their during particular, members As XX active million remarks, ordered mentioned year. my our that, increased

headwind you in carryout for activity. customer If the terms of in contrast us brought business, a the that actually business, with carryout COVID

pick ticket. As pressure fewer there around up customers the growth in into even order was were comfortable to pandemic really carryout out see XXXX restaurants the some did business. story going carryout, we and the on counts during And walking in

us. carryout to source has business for the acquisition a of terrific been prior pandemic, count Now and that growth order customer

see in forward to side on the look is our into we the XXXX, carryout terms growth as to of grow we restart of one So ability is continue sales that that the in drivers the that business. important US, the of of

Stu Levy

the is the thing from delivery I customer in different add of customers. lot carryout I'd said one before, the And think, a as to keep that is, mind, cases, in we've

the confidence that forward. from and customer in a degree such the It's an shift to that delivery kind And us a necessarily can delivery headwind same with business increase have that's of not what to carryout excitement of one about it's reasons bring of in moving we high carryout. base. a and So

Sara Senatore

you. Thank

Operator

from of Stifel. the Your Chris with line O'Cull comes next question

open. line Your is

Chris O'Cull

Thanks. have Good digital their accelerated several the seen increase technology given morning, orders. Ritch, in restaurants in guys. they've investments

that companies some And Domino's might even. I'm with newer probably are starting have of technology these guessing

accelerate its believe competitors? to the you do by plans some up not of to So tech get Domino's investment does needs or its ramp surpassed ensure

Ritch Allison

digital digital continuing is our software, great going development They well. And is stores. of really Chris, you will for nice growth which that ordering. platforms investment Yes. will next-generation we pretty The half and investing right. did any to because in we our invest Pulse forward. that the side of as heartbeat continue been technology, the and in continue. is business. our great in XXXX our a and continuing a ordering our of with have to We're absolutely that every life lead progress saw increase short you're question. continue the of to We're time, of on investments long answer make really And the each in And we've year

year XX% sales During digital points up XXXX, XXXX. about over our We for about X ran XXXX. digital the went throughout sales

it So stores. we how in make will customer We're up also our there operate the business we on investments the to our technology ramping side. relates to continue as investments drive to

team in GPS talked about rolled also system. at substantially in continue tracking. bit We and that entire a I've technology US to invest there, invested XXXX, door We'll faster the the to tools So little our that the additional and table out members across to out to make to for and at stores us help pizzas inside our the customers. the line easier jobs our cut get make

Chris O'Cull

Thank you.

Operator

line of Lauren Your next Credit with question the Silberman Suisse. comes from

is Your line open.

Lauren Silberman

the from third-party delivery, customer geographic competition incremental Difficulty] expansion… acquisition, restaurant [Technical

Ritch Allison

we closer a here. can't hear Hey, start over I mic. you little Lauren, your wonder to if you maybe could

Lauren Silberman

Is better? Hello? this

Ritch Allison

Yes.

up. breaking You're

Lauren Silberman

back I'll the Okay. go hopefully. queue, in

Ritch Allison

Why again to try And Lauren, don't question? back come and later. we will the go next

Operator

the JPMorgan. Ivankoe The John of line next from with question comes

sir. Your line open is

John Ivankoe

of markets restaurants. reopening people much guys you. talk most that through in of of coming lose quarterly back, have they've about they're aren't that, lot But have going consumer XXXX. give companies suggest reopened. grocery and that dining of to weeks. food do know you indicators a seem Thank of get the especially meaningfully to, Hi. to generated packaged business And own with the did And a especially some to going going for I that in logical I thoughts, trade you to their people not very lot want your overall comp just are comparisons about guidance, reasons, the change in as so leading

of half and I sense ‘XX, versus at of to of an as it's So able that the think to of versus of groups restaurants? even inside what even second data ‘XX, listen, or how hey, of certain about educated grow ‘XX make get kind what's we the always we are be going second ‘XX versus using market to sales least half ‘XX expect for of we to being say, be is half some against just ‘XX back people guess second But high-teens way this point, ‘XX difficult early your versus dining ‘XX given guys level, But think for question do guess about a shouldn't and we just feeling comps that. if any of guess. at have might and you comping business, you is, we a if the to and go

Ritch Allison

at in side the thanks would of is the in that, with - of business, guess, carryout question. the I even a business, John, yes, a had earlier. see we what a the we XXXX as that for level And lot on I we had say talked I about headwind tailwind Hey, high the delivery

important driver We're be So invest that the because the going to lot us continue to growth know going to business, delivery us. look lapping side our going continuing carryout tailwind reaccelerate manage what difficult for value also when sure is difficult. some believe is value and growth the Americans, through across continue as to of on we focused of I going going to XXXX, we in to households one is to to for stay economic of on help be fairly have in a the that also making business, always that a as we customers time to their is be

industry, their have unquestioned have leader and family who the pizza the paying We're as have other broadly when a value to up. to in continue folks frankly, houses, the the We'll lot of to to lot really of across that positioning segment. as year a in been our of a of As aggressive what restaurant Domino's we an start food customers, part change food to have And acquire to behaviors like our QSR to you open been about feed weeks, going delivered weeks it to options think our our also that some space. look value years. number over delivered the of four, important costs reinitiate boost to throughout last have strategy

comp for So drive we anything, do just do going how that franchisees lap to a to sustained our is and we're to be do, not long-term growth here. business and manage not the John, how around Everything profitable a ourselves. going continue we we that’s

Stu Levy

we from also rush We to I'd the thing are base hear of about We're wave is restaurants, add only And just you perspective urban into populated when folks other more all is, that back the talking not that dine-in store think the urban generally benefit hit - suburban going dominated. our fact densely that coming prevalent. dominated we a the or they're more are to restaurants those And where markets. people from everywhere.

of some our weather you us confidence to start and the that. store across at of relative gives to be it able you a look As looking lot footprint, landscape that to

John Ivankoe

on you some that those Mississippi, maybe dine-in like as you to in are certain have any suggests of evidence that is as Tennessee, do 'XX Alabama, And markets of Georgia, strong? Florida, in that holding areas business parts business the

Ritch Allison

less, when would city take we see carryout or region - the we say, I second you we've a kind rural, where versus suburban our and business, or pressure seen about rural but of area. been - at has frankly, what the less and the urban that across country, delivery centers guess, John, stores you the less strongest look suburban our the trends is It business most urban in really on businesses. in

John Ivankoe

guys. Thanks,

Operator

Baird. comes question Tarantino David with of the Your next line from

open. line Your is

David Tarantino

your still your Hi, comps you elevated good levels if wondering back quarter fourth to middle it relative the had to Ritch, we from US performance. I healthy, could while go during in And morning. the a of was was perspective any was you lower positioning reasons exiting wondering the year just And related what the were whether the you to brand if in has the I implications kind year. and trend market? on the slower of the opine saw that could and a

Ritch Allison

Sure.

- quarters about and I talk XX% where I comp. a have can an of David lot hope So I

no will as question of further on stimulus there about and stimulus money dollars year comp out from the most certainly, puts a an the fourth the But business. earlier further certainly of relative the is buy the had is. is that little And and as move there bit consumers' to the and we I the impact federal them enacted to food. insurance third and in some go that had deceleration a And in been allows is that in unemployment enhanced our pockets talk away quarter proud So One quarter. it of couple we're pretty that things. that

the of on on the pandemic COVID-XX in a the getting places and cars that less carryout quarter splits fourth and out As a in aggressively you started deeper accelerated, comp. as the folks into significant a to And open resurgence as visit the we material impact see of that to their business. those stores, of some little to when bit across get weighs frankly, comfortable we the has then certainly, going impact continue country, got business

David Tarantino

much. Great. very Thank you,

Operator

of Your comes line question BTIG. with from the Peter next Saleh

Your line open. is

Peter Saleh

service been the availability just of I taking context you've strategy us the ask Thank Ritch, times. and Great. the as the delivery into for to and for the how fourth of increase those in a trended Maybe about really of throughout as year a that delivery times now, couple give and well in could the fortressing you you and and wanted question. drivers. pretty sizable for years implementing quarter, thanks demand

on provide that would So Thanks. you any could details be helpful?

Ritch Allison

little get And is to with is improvements of the that our in that. just have continue part to service to wave you fortress fewer Service and for bit. shrink the Sure. we Thanks, radius going what we And the see the Peter. significant a on business. to hotter, is not but business. travel time XXXX, food. but moats where the Well, we one those claw But important we've be the times of improve demand markets, really back across fortressing relative team, effort I'll as material a And service frankly, well, improvement hard to not quite that, and is franchisees back fresher our rush build around around service time continue our just hard really we suffer initial pandemic. big that been we as tell customers of worked really certainly our do to saw in see, quarter, times improvements, a allowing when us, both first the longer-term on of faster, do to working us store we the we times certainly second miles stores, got corporate side the to and our

Stu Levy

come out And that, from on go can top wait own and to it the having of up. better in to third-party we food right? pick to drive Because service, our oven enables delivering without a us for the door

Peter Saleh

very you much. Thank Great.

Operator

Your Morgan of next the John from line Glass comes Stanley. with question

Your open. is line

John Glass

of state to wanted I share all. market morning in good and come back, the Ritch, Thanks question.

if share remember really ICR didn't and from I shared the you And was, to that change think it some market XX%. delivery, ‘XX. I correctly, like

correct, me you And past. will if more let you're grown it's So correct, not the you - a capability. your in year year, why or could But growing share given have where this share think that's be if know. just

the it it how you got independents maybe just the it why got - think think in of suddenly is What that do So stronger? what - changed it? that's dynamic Is that causes case? you in And Was better? everyone do XXXX? why

Ritch Allison

John. Yes,

broad XXXX what was across just category. growth think I in the we saw

broadly growth that XXXX. lot ‘XX, we independents growth. business, delivery there to So a jumped business back had independents to didn't across big their use third-party maybe some delivery regionals maybe the ‘XX was of resulted of in have category coming of past. through that terrific they deliver while a lot our A with delivery the and in both there product, aggregators into feet in alive of the in the wasn't that delivery from certainly in stay some and growth And

John Glass

Thank you.

Operator

the Gonzalez next with Your line question Eric comes KeyBanc. from of

Your line is open.

Eric Gonzalez

Hi. morning. the Thanks question. And good for

wondering without menu? your eventually back things price having have gap versus potential the from would inflation items can away other perspective impact a And to an what on X.XX might to wage I platforms? on those those the need ability materially to from for to done that Regarding said points happen hold you those to be widen all to to what points. come end, Thanks. an and protect increases, price good was that might Or recognizing how way, different X.XX

Ritch Allison

Sure, Eric.

today. environment, we've today, is So we way know in there. I a to up at, country business like today, you the we to wage, minimum at But in across us wage, a particular, Seattle, operated of have is to that. minimum really the rates enable there certainly a which that across do as volumes in topic way the level X.XX without that And that the One out run value and And having states at no of are we the to is $XX are platforms the we've that interesting $XX, excess about it offer wide stay is able country. volume is an things hour. relates thinking that it And all the in high everybody there's like wage today. of thing already still as X.XX spectrum can is, wage couple federal been places operate a

around menu fees. than pricing Second franchisees local transparent are around the they're at to And their level, higher is that in the be markets these and going our of the in some delivery have flexibility level others. fees delivery wage at they higher local

minimum we've So across been wage I'll minimum not increases of to wage anyway. tell able in paying store federal a quite through the our lot our business, way the manage country. honestly, And we're you, corporate

of You people that can't on our anyway. hour folks our the go in we're stores out supply excess drivers and we work and an in business, tip for above wage, rate our chain road. the both operate. $XX And that at minimum We're the there inside then hire everywhere

Stu Levy

continue cost food you for year, we and a the And increases and where if had maximizing around additional research mean, every us, think us. to for profit. have wage is I increases deep price it's and about we've point profit Yes. And - ton do been rate of drive they've them market analytics we offers, years. that for -- basically

to where And and it's certainly to - certainly a so. do it been not provide is the able we that not a set it's of place So continue and consumer, arbitrarily. ton value profitably to do we've

Eric Gonzalez

Thanks.

Operator

the Suisse. line of Silberman from Your comes with Credit Lauren next question

open. line Your is

Lauren Silberman

Thanks. hear me now? Can guys you better

Ritch Allison

better. Lauren. Yes. Thanks, It’s much

Lauren Silberman

Awesome. Okay.

Sorry about that.

some focused in incremental growth coming that with the mentioned as back better in So third bringing facing positioned restaurants at delivery think traffic benefited pizza regulatory will of COVID, of any is of general So and or look requirements, competitive be competition into today, delivery. in-store you likely you the has increased? given party challenging the you acceleration respect the third Domino's the Domino's COVID, category on overall in from now and that depth has a is Richard competition with the delivery there's do breadth and environment more party channel adoption? more to kind more position regular

Ritch Allison

for bit a guess, Lauren, regulatory. it's little less us, about I Yes,

we never a in I -- struggled think make understanding bit businesses. economics product, made the money delivery. we long-term dollar the XX-years, aggregator a little be but We honest, don't delivering In we pizza. on the on us, we've some of money make a the for

come delivery at digging at pressure, you to look for lot when trying to our cost just not aggregators. And how continue from are to it. service come closer get to restaurants customer. just we're the that's in money expand of rising or to be make you food service, from to customers sure service they going overtime, shrink put environments, get able customers, in of while to on do the think got the we're somewhere. start a them worth service. going about particularly a to to to their the more So And And free customer to And cost we charges. which to inserts value others the get we restaurant overtime are paying and when chain, into profit these And it our these has area to in a equation, fees $XX better lot themselves third-parties of delivery the it's they think $XX from takes start somebody that and world the think either away reach looking who make where trying to have to margins independent

that the of aggregator. an that some some public as you've profitability players driving with So all And we're it seen of how commented just plays who space in challenge not of long-term about the sure out. have

out. a a value, So from for to certainly, But out. And as it long at perspective, providing to think the great else pretty value. us, continue be our we're let shake know great we'll good And don't long great delivery in we provider, how with all product service a we're we spot. will low-cost as just shake we everything provide take great

Lauren Silberman

you. Thank

Operator

comes Dennis Your Geiger from the UBS. of next with question line

Your open. is line

Dennis Geiger

to more wondering about you gained keep customers those Great. you even Ritch, just on Thanks and new talk think the in XXXX, ask innovation product those two wanted opportunities that forward. attract new I'm little guess, going we and and and as customers a kind I XXXX more of if might have going to for allow forward. some or could bit how you loyalty of new question. I about might the

to category going Just those may help or Thanks. share even initiatives forward? hold how kind you of gain

Ritch Allison

the for question. Thanks Sure.

front. increase members active of on rewards because are even little more metrics the So is just plus. I'll I that One shared bit number talk important think pie in maybe our a about the XX loyalty, couple broadly I was million earlier program, were this piece which there of of that up of a to the

which level And an plus that XX we've saw have program of ours. among group in that point that, million also increase a our that customers the scale, Once engagement We and big well, of frequency is in gets that focus plus. as that program, and got got database. million million at been plus some enrolled - we've got are beyond XX we've XX in to

customers time to treasure drive initiatives we about how find better them So we spent that mine and their serve thinking ways a need to frequency. on at of to time lot continue of of higher can

opportunity job higher over better that shared Another upsell stickier the with on another across engagement the XX% earlier is to the because we XX% with ordering to ticket with digital our going be because with do customer customers up is, And that they tend sales digitally, base those broadly tend tends metric in - saw I the that us start be long-term. digital year they from important a during our to customers, them. we see increase also once

that part going been And some XXXX we that has that on you launched been that based earlier, successfully continue, working new three as that efforts space. then focused as exciting we'll that's So got on on and had, I continue many customers also. team products of We asked forward. about things do be of playbook I as our mentioned We've always I working to a like, in do, going testing, to and certainly our our culinary our lot well. we in

from So XXXX us you'll as that space in during some see news more coming well.

Dennis Geiger

Rich. Thanks,

Operator

question comes Markets. Capital Carril with the Chris Your of line RBC next from

is line open. Your

Chris Carril

the Hi, for good morning. Thanks question.

Just and carryout up in around comments labor the labor the margins - versus following as increasing opportunity well delivery minimum the carryout just you margins? thinking as higher of costs? for especially are So with on How on carryout costs. context about potential the wage incrementally focus on

Ritch Allison

the carryout question. mix prior bit during great a had customer just that talked And It's given changing the Yes. earlier, to down XX% about we as And taken mix pandemic, came we to the about behaviors. up of a orders. COVID, our

business cost lower with are toward rate to seen, tilts orders. store And very gets carryout a higher growing business carryout hourly in part to profitability forward. much level we've in continuing the your in market, Driving much carryout focused have those our of the as We important the which orders. more labor profitability this does. there's associated of US really labor XXXX well your And been franchisees. that so has a the and at ticket less equation while point, the some labor of the of international frankly, each carryout is those much order, that grow something That is for the average on that on higher markets our carryout than costs

Stu Levy

on both we But profitable channels. are

Ritch Allison

Absolutely.

Chris Carril

you. Great. Thank

Operator

question Your line Levy from Partners. with of next MKM the Brett comes

is Your open. line

Brett Levy

Good you. Thank morning. Great.

or tough what throughout cost. rising I the it up are moving and system, following going the parts are question. was that flexible Eric's on on, there With think you Just How of of comparison, all with they're just their terms you. thinking Thank is in how franchises a that add or pool? the about from XXXX, labor to standpoint to a pricing willingness approaching whether ability a from hearing and marketing

Ritch Allison

over in, US continue a franchisees everyone Sure. I building What base Because thing that's invest also tell and a to drivers continuing profits their are we about businesses places have of add mentioned, stores. more to increased, talk that trying you you also, store in can XXXX. teams. time. new and franchisees openings, would eager business, to funny got go go that And gets the new up adding and as the But ways. you around your of splitting, attractive. to and lean excited Because members One have we're is grow such delivery to their hire fantastic you happens stores. to or team fortressing is aggressively I there to to in couple when across Great sales excited in tell when their in question. your are as more those who equation I that we where we've particularly even out sales and add

ready So to lean we've got XXXX. in group a committed that's and in invest

Operator

comes line with Bernstein from next question Your Barclays. Jeffrey the of

open. is line Your

Jeffrey Bernstein

Thank very much. you Great.

you remain talked will on maybe more traffic aggregator aggressively. that within increases we solo. And have a COVID at in on previously subgroup keen sites. has said, that know I consolidation that driven Just question. I you had these seen With about follow-up guys to and think least were promoting large the

additional pay have it the about Thank still platform make So what wondering – even allow your or But service. pay to risks and – to the you not delivery, do the retain just just if drive eyeballs on their to were reach the traffic, would profitable. might be fees would sure the allows you. you the you to risk service aggregators and having but mentioned, necessarily front as impacting the I'm never you're think to and sales? Stu ever which generate the just on it levels brand risk of your that

Ritch Allison

last certainly make doesn't it to it make third of with or our risk data it parties. here doesn't sense. Every customer if Yes, at as orders allow international it of Jeff. times gather many these context, make the years. We've anywhere. made through And some of our time in of international the over some sense deliver our couple at sense our the economically, food our it's of all look US, economically. for don't do And franchisees sharing aggregators to we But We it some us looked markets, in doesn't aggregators. sense just many, markets in some their take

Operator

comes The Palmer David Evercore next from line of you. ISI. Thank with question the

is line open. Your

David Palmer

that wondering pickup conversely, And that snapback? expect hammered on you've do probably delivery got business this are remaining and market pretty – you going follow-up or others? presentation independents forward. then at ICR of the it's share big you would store. have maybe, remain? the down influence those or about you also that as long-term meant you guess are perhaps imagine than that talked not. gained pizza, market share, legacies Or I about some lot about view I some in Thanks. terms of at overall Thanks. in lot QSR pizza. a overall Do might share shifts How you've hard flat shown these these is thinking a of any stickiness in scars on questions I'm but the your of delivery, a the more a share things? of of You which means the sticky COVID

Ritch Allison

Sure, Yes. David.

restaurants the is, way the how with a jumping strategies to share market against we in the pick at and particular, of we So consumers of segments. put around, that unique segments in delivery continue in plans very with segments our many choice teams certainly, shifted having market and both the in of And But many no delivered. up and to year into this we are place or of food business, have both share about look delivery, terms it XXXX very good the business. our continue feel have those driving so some drive to both to executing so strategies was carryout frankly, in but it of go

Stu Levy

smaller And viability I have you're market of the chain. third aggregators make we does that jumped a in have data and using to area the to to exorbitant generalization independents yet do And it's to like of long-term your an lot questions fees we a about some a by for comments get. to you not on hard step think, certainly, if the market made it independent into because said, vary on really to really I hard a area. that before where that independents paying in is the third-party value really delivery party, the or

as So that Your guess all out? good ours. when is as shake does

David Palmer

Thank you.

Operator

with next Your comes question Jared Goldman Garber the of Sachs. from line

open. is line Your

Jared Garber

quarter, trended took know morning. for update potential changes trends the any saw, wanted a ebbs that parties flows question. the maybe day shifting more saw the and Thanks color during of if the the to could Thanks. maybe of would you usage taking if fourth the part what And you pandemic. to late throughout year. I some give and an with the quarter? hit COVID? on us and I know, I imagine that Good that's this how weekend any wanted of you guys fourth night around

Ritch Allison

lunch Thanks, story and has same. on day really downward pressure late and We've Jared. staying night with Yes, dinner really some the part, strong. the been throughout that really had pandemic, evening

Operator

All right.

comes Farmer Gordon Your of Haskett. Jeff the with next from question line

Your open. is line

Jeff Farmer

eight I'm stood you months Thank Thank curbside could can nationally has specifically some delivery in roughly you it how mix customer you. And delivery just place hopefully, on is build you. been like guys this continued fourth awareness? your color where your the point. Looks at in with curious, as share if adoption share, quarter? more more Carside for progressing to

Ritch Allison

this we out about the Yes. the Domino's didn't the haul, was customers. And long forward delivery will the so rolled is Carside delivery. exist at that XXXX. do the an Jeff, carryout we to accelerated have our Domino's in only to now and our as about got the us fully for But it in or window. the drive-through even We've has against of compete idea, on. the we're that excited way frankly, safe beginning pulled It just we've a helped And only over pandemic something And Carside look at drive-through. US XX% of concept a development really team system. across not

sharing mix, competitive a yet increase to customer faster don't this QSR Domino's serve of their a within externally Carside cars. to can have can in drive-through in launched are And And times we you on to usage that to we since through point us a getting we And in even window. at great drive going a to at without rollout, a you continued aspiration than we where plans that is Carside dramatic to not customers be Domino's way of Carside our point line have for well here, XXXX higher. get get delivery But the part improve the to is of service your them out - we're is our that we reach, delivery. Post our for seen wait your food get So reasons. delivery which it.

Operator

All right.

from question next Cowen. line Charles Your comes with the Andrew of

is open. Your line

Andrew Charles

Great. Thank you.

the you million help XXXX while is XX utilized XX guys in Thanks. help Can at the level reconcile members you million efforts XXXX. from loyalty in slowed But like obviously program record of from XX XX XXXX looks there it XXXX end that customers given XXXX. to in members about mentioned this a You growth the the sedentary million of grew roughly million in the to population? enroll US a in more program to

Ritch Allison

Sure, Andrew.

frequency the grew the which at we that XXXX the are aggressive it which program, they acquisition. customer thing difficult customers in quarters, active any the membership second still that more order. things the of an the weeks, overall it these three a is So of of most that we growth of increase more the at was, with to drive use boost grow the programs, a really then customers And without with of final bigger the with the year-on-year. important drive those our back with when bigger, And in with look number over to pleased able also those growing tool were were in it couple customers. two engagement we types and is, in one, we is business, when get you combination metrics in look sales active part that But as take those one of loyal another loyalty volume in gets driving and program while

Operator

Alex next Slagle line the Jefferies. Your from question comes of with

Your is open. line

Alex Slagle

Yes, thanks. Good morning.

franchisee the On profitability, obviously, XXXX a was knockout year.

on ‘XX franchisee much profitability beyond. Just will the kind what reduced curious thoughts you into how and and efforts discounting impacted the and of think like promotional it look

Ritch Allison

really did franchisee increasing business. in We also items each for driven XXXX. ticket, across but counts terrific increases driven by, by but of the on in order the ticket, orders. year the average But bought prices, business, it's it that particularly side smart on of is in their number And increases delivery of on the customers increasing Yes. profitability not what

the in some increase costs uptick it that drove profitability costs even of in in and other the labor So really volume the year. in during that business, face the increases is fixed

Stu Levy

item the you basically in operating item - the gets really that store. in leverage Yes. that uptick And count

Alex Slagle

Thanks.

Operator

James from with the Your comes question next Stephens. line of Rutherford

open. is line Your

James Rutherford

COVID back about toward that curious Thanks from like for example, Domino's you're the carryout will mix comments, turn there? more ticket order, shift some that taking operator's after the color you Thanks potentially extent seems the previous mean, expecting question. elevate given customers just size proposition? compromising so that. I'm order possibly the a are about difference things hear without I'm understand delivery top carryout what to It your stream. of in for value this typical gain. year trying during big desirable how navigate carryout carryout the love the the impact the into is certain much. than But delivery perspective home work potential for to the impact, an royalty from revenue to line do I'd And or that to a like that I more to something margins. could transaction way What's delivery check

Ritch Allison

other. one of only understand But COVID will and of have Sure, of or be data tend changes. to objective carryout, COVID, all both is channels. customers be grow customer there XX% prior behavior all yet the delivery of were sure. the fully about And to to customers both for we don't the COVID, because the out us those that to

XXXX it those about look going it through of we a is be grow So think set we of do how business going to two beyond, as around in strategies unique each the at and channels. forward and

to So initiatives have of and strategies side not could gained are got side of we've And carryout while we're side set of those to with from well certainly that customers on we hold going continue going execute the we we're a the in stepping Domino's that delivery during place, that to delivery that to other be the so we XXXX. aggressive also. course the business as on the away side on delivery absolutely car we

Stu Levy

just much We're gaining of one the that notable or some from of kind been from not on it fee. reemergence the a ticket as delivery a so looking or shift is back sideline. carryout at obviously, difference, other as those a the have is The customers perspective most it

Ritch Allison

item And slightly both orders typically, franchisees. - count it's and for little very just a as well. But lower our channels, in bit those attractive profitable businesses

Operator

questions sir. time. over to would I for this closing Executive ahead, turn Allison, Officer, Go to further no Rich are like remarks. There back at Chief call the

Ritch Allison

look everybody, our forward morning. us we'll thanks, listen, And for you you. and April, in with And on Stu speaking this call when Thank joining quarter I first to the late results. discuss XXXX

Operator

today's Thank have conference. a and for gentlemen, concludes this participation, and Ladies your wonderful you day.

disconnect. You may all

Domino's Pizza (DPZ) 25 Feb 212020 Q4 Earnings call transcript