Wall Street and the QSR world are abuzz over Domino’s robust earnings report this morning. The pizza chain reported that its U.S. same-store sales are up 13% from Q3 last year – the 22nd straight quarter of gains. Net income reported today from Q3 2016 was $47.2MM; this is a 24.8% increase over the $37.8MM reported during the same period in 2015.
CNBC’s Jim Cramer has already called it an "amazing, amazing quarter" for Dominos.
Amidst daily reports that spending on fast food is down because people are eating more at home amid falling supermarket prices, how did Dominos do it? And how is it gobbling up Pizza Hut’s market share?
Quantifind's SIGNUM for Restaurants filters and correlates consumer conversation to the KPIs that matter most – restaurant sales numbers.
Signum data shows that Dominos rules the night. Buyers are 5x more likely to associate Dominos with the night day-part than they are Pizza Hut; some consumers even refer to eating Dominos as an “every night” event.
Consumers understand that pizza isn’t super healthy, but that sentiment is largely overlooked when eating it late with friends.
The buyers’ voice also articulates the popularity of Domino's mobile app, which dominates the conversation relative to Pizza Hut’s. Here is the data from Q3.
This momentum was helped by Domino’s (however flawed) free pizza promotion with T-Mobile in June, the demise of which seems to have left no lasting negative effect on the brand. Domino’s text-to-order program, on the other hand, is clearly here to stay. 🍕🍕
App downloads point to continued Dominos momentum with the younger crowd. And our data more than backs this up.
Buyers under the age of 35 feel much more loyalty to Dominos and that gap is growing. And while it’s inevitable many of those young folks will grow up, have families and drive their kids to Pizza Hut, brand loyalties are hard to break and mobile app and SMS usage aren't exactly in decline.
Curious which competitors are eating your lunch and how you should fight back? Want to know who’s driving your revenue, and how to drive more? Quantifind can illuminate your competitive blindspots and show you how to steal market share.