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Domino’s is eyeing menu price increases.
In an earnings call Monday, CFO Sandeep Reddy said the company is “planning for a modest price increase in the low-single digits.”
Reddy also told analysts that prices will rise even more in California “to offset the wage impacts” from legislation that will raise the minimum wage for fast food workers in the state.
DOMINO’S RELEASES NEW ‘EMERGENCY PIZZA’ PROGRAM, OFFERING CUSTOMERS A FREE MEDIUM PIZZA WHEN MOST ‘NEEDED’
The bill to do so was signed last fall by Gov. Gavin Newsom and is slated to take effect on April 1.
A Domino’s Pizza sign sits on the top of a delivery car outside a restaurant in Los Angeles, California, on July 18, 2018. (Reuters/Lucy Nicholson / Reuters Photos)
However, the price increases come just as the company reported better-than-expected results for the quarter. Sales at stores that were open for at least a year grew 2.8% for the fourth quarter. This beat analysts’ expectations of 2.2%, according to Reuters.
The company attributed some of its success to its loyalty program, which saw an influx of three million new members last year. The company attracted another two million people after it revamped the program, CEO Russell Weiner said.
DOMINO’S, UBER PARTNER ON PIZZA ORDERING, DELIVERIES
Its Emergency Pizza promotion also boosted those numbers, according to Weiner.
Dominos Pizza location (Domino’s / Fox News)
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With the promotion, customers could earn a free “emergency pizza” through early February with qualifying orders.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| DPZ | DOMINO’S PIZZA INC. | 459.11 | +25.52 | +5.89% |
“Clearly, customers want value, and we are driving it profitably for our franchisees,” the chief executive added.
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