The pizza chain ends the period with more than 21,000 locations worldwide.
By Andrew Carlo
Domino’s, the international pizza chain, recently posted strong third quarter financial results.
But franchise sales had a big part in helping push Domino’s ahead for the period.
Total sales at Domino’s increased more than 5% to $4.4 billion for the period as U.S. revenue moved forward by 5.1% to $2.2 billion. International sales also moved ahead by 5.1% to more than $2.2 billion for the third quarter. Same store sales rose by 3% in the United States.
The Ann Arbor, Michigan-based company attributed some of its success to U.S. franchise advertising in addition to U.S. franchise royalties and fees revenues.
Dominos ended the third quarter with a global store count of over 21,000, This includes the opening of 22 new franchise locations domestically.
About 96% of Domino’s U.S. stores are franchise-owned. Domino’s has more than 700 independent franchise owners in the U.S. and over 95% of owners started their careers as drivers, pizza makers, or hourly workers
In August 2023, the company’s master franchisee that owned and operated Domino’s Pizza stores in Russia announced its intent to file for bankruptcy with respect to the stores in that market. As a result, Domino’s said that it has considered the stores in the Russia market to be closed and they are excluded from the store count as of the end of the third quarter of 2023.
“Our third quarter results once again demonstrated that our Hungry for MORE strategy is resonating, despite a pressured global marketplace,” said Russell Weiner, Domino’s CEO. “In our international business, we are on track for our 31st consecutive year of same store sales growth, demonstrating our sustained long-term track record of success. In the U.S., we drove our 4th straight quarter of profitable order count growth, highlighting that our strategies are driving positive outcomes.”
Domino’s net income slipped by $0.8 million, or 0.5%, in the third quarter of 2024 as compared to the third quarter of 2023 due to higher provision for income taxes. According to the pizza maker, its provision for income taxes increased $9.8 million in the third quarter of 2024 due to a higher effective tax rate and higher income before provision for income taxes.
“With the slate of initiatives we have in place, I am confident that we will continue to win and grow our market share across the globe for years to come,” Weiner said.
