Redesigned pizza recipe leads to second-quarter sales bump for Domino's Pizza
Ann Arbor-based Domino's Pizza is still reaping the benefits of its decision seven months ago to introduce a revamped core pizza recipe.
Domino's said today that "sustained positive consumer response to the company’s
improved pizza" helped generate an 8.8 percent sales increase during the fiscal quarter ended June 20, compared to the same period last year.
The company also said that strong overall sales volume and continued growth at its international stores boosted the bottom line.
The new core recipe for Domino's Pizza generated a sales increase during the second quarter for the Ann Arbor-based chain.
Photo courtesy of Domino's Pizza
"The increased sales were not just driven by trial, but by repeat orders from our new larger customer base," Domino's CEO J. Patrick Doyle
said in a statement. "I continue to be bullish on the performance of
our U.S. business. Meanwhile, despite the tough global economy, our
international business continues to thrive - proving the strength of
our international franchise business model.”
The latest financial results follow similarly strong earnings reported in the first quarter, when U.S. stores, benefiting from an aggressive marketing campaign tied to the new recipe, reported a 14.3 percent same-store sales increase.
Domino's, detailing its second quarter financial results today, reported net income of $22.6 million, up from $14.5 million in the second quarter of 2009. Its total revenue -- a figure that does not include sales at stores owned by franchisees -- rose 14.5 percent to $362.4 million.
The firm's global retail sales, which measures total sales at all Domino's locations, rose 12.5 percent.
Domino's reported its 66th consecutive quarter of growth at its international stores, where sales rose 6.2 percent compared to the last second quarter. The company opened 73 new foreign stores during the second quarter and closed 11 for a total of 4,126.
In the U.S., Domino's opened 21 stores and closed 22 for a total of 4,910, including 4,453 owned by franchisees.
Domino’s employs about 500 workers at its headquarters in Ann Arbor Township and 10,500 full-time workers at its company-owned stores.
Contact AnnArbor.com's Nathan Bomey at (734) 623-2587 or nathanbomey@annarbor.com. You can also follow him on Twitter or subscribe to AnnArbor.com's newsletters.
Comments
Domino's Pizza
Thu, Jul 29, 2010 : 2:32 p.m.
Phil from Domino's here. @garisondyer, you can ask the store to leave the garlic seasoning off your pizza when you phone in your order. That should help. @townie54, please let your store know your pizza is undercooked. They should replace it for you if you're not satisfied. Thanks all for the input.
townie54
Wed, Jul 28, 2010 : 10:54 p.m.
I TRIED the new recipe but they still dont cook it all the way through which is why I didnt like the old recipe.Nothing worse than gluey dough in the middle of the crust.It still tastes cheap too.Never again.I would rather cook and have frozen pizza than this
Ethics Advocate
Wed, Jul 28, 2010 : 9:13 a.m.
Why did the headline writer use the word "bump"? When I get bumped, I don't like it! So when I read the headline, I assumed Domino's sales had fallen. In any event, I don't understand why some people are so totally negative about Domino's pizza. It may not be #1 in town, but it's very good and isn't the worst (as opposed to the "worse pizza I ever had," Tom).
Dave66
Wed, Jul 28, 2010 : 6:35 a.m.
Their new recipe is great. Before it tasted like generic ketchup on cardboard. Now it tastes like name-brand ketchup on cardboard. Keep up the good work, Domino's. Maybe the next improvement will be to make it taste like premium cardboard.
Tom Joad
Tue, Jul 27, 2010 : 6:12 p.m.
Proud to say I've only eaten Domino's pizza just once...worse pizza I've ever had the misfortune to try.
obviouscomment
Tue, Jul 27, 2010 : 4:53 p.m.
i don't understand why people don't like dominos...i liked it before but it wasn't the best...now i love it...i don't know about the complaint of the garlic butter...i think their garlic butter is so much better than other places because it always tastes burnt on the other pizzas...dominos is my new fav
bunnyabbot
Tue, Jul 27, 2010 : 3:58 p.m.
new recipe or not I will never ever eat domino's
Henry Ruger
Tue, Jul 27, 2010 : 3:23 p.m.
Good for Domino's. They're an important part of the local economy. I thought their pizza was okay, even before the change in recipe, but I've heard from some that they didn't like it. Worth a try, anyway.
garrisondyer
Tue, Jul 27, 2010 : 3:15 p.m.
Everything tastes exactly the same to me, except the absolutely horrible "garlic butter" they spread on the outside of the crust. It doesn't taste like garlic in the least, and if I really wanted my crust to taste like liquid butter-substance (so gross), I would ask for it.