U.S. Same-Store Sales Outlook
Q: Is 5.6% 1Q same-store sales the peak for 2024?
A: Management aims to exceed the 3% floor each quarter; strong Q1 results are driven by repeatable components, suggesting potential for sustained performance.

Q2 Comp Expectations and Industry Outlook
Q: Are lower Q2 comps surprising, and thoughts on slowing QSR industry?
A: Lower Q2 comps are as expected due to normalization post-promotions; management is not surprised and anticipates strong performance. Industry-wide, increased pricing has impacted order counts, but Domino's stable pricing and focus on value position them favorably.

Supply Chain Margin Outlook
Q: Can you elaborate on supply chain margins and full-year outlook?
A: Q1 saw improved supply chain margins from procurement benefits; some investments delayed to later in the year will pressure Q2–Q4 margins, but full-year expectations remain unchanged.

Labor Availability and Wage Pressures
Q: How is labor availability impacting sales and margins?
A: Labor availability is not an issue, enabling more orders with better delivery times; wage pressures from minimum wage increases, especially in California, have led to price adjustments to protect franchisee profitability, focusing on profit dollar growth.

International Growth Challenges
Q: What's causing slower international growth, and plans to improve?
A: Growth is pressured by challenges in Europe and the Middle East; key markets like Australia and Mexico are adopting the "Hungry for MORE" strategy, and management expects comps to return to the 3% growth algorithm in the second half.

Promotional Environment and Profitability
Q: How is increased promotional activity affecting margins and sales?
A: While third-party channels are more promotional, Domino's focuses on impactful promotions that enhance value perception without harming profitability; profit dollar growth remains strong, on track for $170,000+ per store this year.

U.S. Store Growth Outlook
Q: How is the U.S. store growth pipeline developing?
A: Confident in opening 175+ new stores; improving profits and order counts make Domino's attractive to franchisees, supporting future expansion.

Loyalty Program Impact
Q: How is the rewards program driving comp sales and sustaining growth?
A: The revamped loyalty program significantly boosted order counts by engaging more carryout customers and light users; expected to be an ongoing sales growth driver.

Third-Party Delivery Strategy
Q: How are you adjusting promotions on third-party platforms?
A: Maintaining best pricing on Domino's online channels while adjusting promotional tactics on third-party platforms; confident these efforts will help reach the 3% exit rate goal for the year.

Pizza Category and Market Share
Q: Is the pizza category growing, or is Domino's gaining share?
A: The category is growing in line with the population; Domino's is regaining market share through self-help initiatives, especially in carryout, where growth is significant and largely incremental.

Consumer Behavior Across Income Cohorts
Q: How are consumers across income levels engaging with the brand?
A: Positive order counts across all income cohorts, driven by the revamped loyalty program appealing to carryout customers and lower-income, lower-frequency customers with lower purchase thresholds and new redemption levels.

Existing Loyalty Members and Promotions
Q: How have existing loyalty members responded to the new program?
A: Existing members are highly engaged, benefiting from additional rewards; consumer demand remains strong outside promotional windows due to the loyalty program's effectiveness and impactful promotions creating talk value.

Managing Delivery Volume Growth
Q: Will higher volumes require more drivers or productivity improvements?
A: Increased volumes can be managed without proportionally adding drivers due to scalability and back-of-house improvements; productivity enhancements make orders more leverageable, and success attracts drivers to the brand.

Advertising Approach Impact
Q: How has the evolved advertising strategy affected comps?
A: Enhanced focus on food quality and value in advertising has improved breakthrough and consumer perception; contributes positively to same-store sales growth.

Operational Focus on Consistency
Q: What's the focus on dough operations about?
A: Emphasis on product consistency to enhance quality and drive repeat purchases; ensuring every pizza delights customers strengthens loyalty and boosts sales through consistency and the loyalty program.

Delivery Fee Structure
Q: Are there opportunities to adjust your delivery fee structure?
A: Domino's monitors delivery fees to stay competitive, balancing value with profitability; focuses on overall value perception and maintains best pricing on dominos.com.

Third-Party Delivery Consumer Behavior
Q: How does consumer behavior differ with third-party delivery?
A: Third-party customers are younger, single users; about two-thirds of orders are incremental; promotional dynamics differ but overall results align with expectations.

Non-Pizza Items and Lunch Daypart
Q: Will you promote non-pizza items and lunch on UberEATS?
A: Prefer to promote the entire menu rather than focusing on non-pizza items or lunch; mix-and-match strategy drives bigger sales, aiming to maintain momentum without fragmenting efforts.

New Product – New York Style Pizza
Q: How does New York Style Pizza fit into promotions and attract customers?
A: Targets customers preferring thinner crust and quality ingredients; a permanent menu addition integrated into promotions like the $6.99 mix and match, aiming to attract new users, including those on third-party apps and newcomers to the loyalty program.