For Domino’s Investors, Chain Restaurant Price Wars May Be ‘Best Deal Ever’
In August, the company revived its “Best Deal Ever” promotion, offering a large pizza with any toppings for just $9.99.

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Here’s how one company took advantage of the domino effect in real time: Trade wars and economic uncertainty triggered a consumer pullback, a consumer pullback triggered fast-food industry competition on price, competition on price is triggering an overhaul of Domino’s discounts and deals, and Domino’s discounts and deals are leading to more customers.
In its third-quarter earnings report on Tuesday, Domino’s Pizza announced stellar results, with revenue rising more than 6% year-over-year and same-store sales increasing more than 5%. Key to its success? Deals, deals, deals.
Slice of Life
The fast-food industry’s value wars have been going on for a while now, and Domino’s has heard the call of duty loud and clear. In August, the company revived its “Best Deal Ever” promotion, offering a large pizza with any toppings for just $9.99, while continuing other promotions such as occasional “Boost Weeks,” which knock 50% off the price of some menu items, and an occasional $6.99 carryout deal for any large two-topping pizza.
“We ended up doing ‘Best Deal Ever’ longer than we expected because our franchisees called us and told us that it was driving business in their stores,” CEO Russell Weiner said during the earnings call on Tuesday. The company also credited menu innovation, such as the launch of its Parmesan Stuffed Crust Pizza, as well as its first full quarter featuring a partnership with DoorDash, as keys to its success. That success may be the envy of the industry:
- The company reported $139 million in net income in the most recent quarter on revenue of nearly $4.7 billion. That’s up from $131 million in the second quarter, though down 5% year-over-year, which the company pegged to unrealized losses associated with its investment in DPC Dash, the entity that runs its franchises in China.
- Still, the combination of profitability and slashing prices isn’t easy. McDonald’s, for instance, has practically met with civil war as franchise owners push back against corporate mandates for low-margin discount offers. “We can have sustained value that’s profitable, unlike other folks who are probably spending away their balance sheet to keep up,” Weiner said on Tuesday.
Frozen In Time: Now for the more important question: Are pizza takeout sales a recession indicator? No, but frozen pizza sales might be. In the first quarter, Domino’s suffered declining same-store sales in the US, as low-income consumers abandoned the chain amid heightened economic uncertainty at the start of the trade war. Which means the chain’s third-quarter success may be another reason for macroeconomic optimism (though we certainly won’t discount the idea that it’s the result of everyone eating their anxiety, either).