Domino’s Pizza, Inc. (NYSE:DPZ) Q4 2022 Earnings Call Transcript

Not every single call goes through the call centers, but they are there to help and that makes the job easier for our team members. We have a lot of operation simplification processes that we put into place that we’re really excited to share with you guys when you come in for Investor Day. And then something that I’d point to that we just launched was this EV fleet. So we have an EV fleet of 800 vehicles, but that actually is part of a larger kind of strategic shift you’re starting to see with our franchisees and corporate stores and purchasing vehicles. And what that enables us to do is attract folks who’ve got driver’s licenses, but maybe don’t have access to vehicles. So when you put all that stuff together, you’re seeing a more efficient inflow of people, more efficient operations, new pools of driver, that’s why you’re seeing the sequential improvement in the first and fifth quintile.

And that’s why you know we got another boost week coming up, back to the regular cadence as we said we would do in Q3.

Operator: Thank you. One moment for our next question. And our next question comes in the line of Brian Mullan from Deutsche Bank. Your question, please.

Brian Mullan : Hey! thank you. just a question on the Carryout business in the U.S. In the quarter same store sales were up 31% versus ’19. It’s very, very strong on an absolute basis. It sounds like that trend versus ’19 did decelerate a little bit, a few hundred basis points versus the 35% you saw in the third quarter. Just wondering if you could speak to the dynamics you think were at playing in the quarter in Carryout and what might have been behind that deceleration, if anything worth noting.

A – Russell Weiner: Brian, good morning. I think, look €“ on the Carryout business, when we look at it, when we look at three years tax of 31% on a business that has actually grown over $1 billion over the last three years, you get to a point where the sequential change is sometimes going to be off a little bit, but I don’t think it really reflects on the underlying business. The underlying business is extremely strong. We are really pleased about what we are seeing in the Carryout business, both as we look back on 2022 and as we look forward into 2023. So, super happy with what we’ve seen.

Operator: Thank you. One moment for our next question. And our next question comes from the line of Dennis Geiger from UBS. Your question, please.

Dennis Geiger : Great, thank you. I wanted to have another one on the U.S. delivery challenges and how you address those, the biggest issues there. Russell, you just mentioned a focus on making the order experience better than everyone else’s, and I think at the end of your prepared remarks you gave a bunch of points of focus for sales going forward. But can you talk a bit more about the biggest opportunities to address the delivery pressures right now? Just you know, how difficult it is to overcome this kind of macro pressure, but again ultimately how you can do that within your brand. Thank you.