MCD - Domino's Is Growing Sales Again -- but Not by Boosting Prices
2024-03-03 08:35:00 ET
Investors have had to take sales growth metrics with a grain of salt in recent quarters. Many consumer-facing businesses are reporting higher revenue simply due to price increases, which are offsetting lower sales volumes. McDonald's (NYSE: MCD) endured declining customer traffic this past quarter, for example, yet its comparable-store sales were up 4% in the core U.S. market.
Domino's Pizza (NYSE: DPZ) is growing through other, more impressive means. The pizza delivery leader recently announced a return to revenue gains that were powered by rising sales volumes. Let's take a closer look.
Following a tough post-pandemic period, Domino's is on a stronger growth path heading into 2024. Sure, its 2.8% comparable-store sales increase was below McDonald's 4.3% boost in the same period. But while Mickey D's sales trends are slowing down, Domino's growth rate is accelerating. Comps fell 1% in the previous quarter, for context.
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Domino's Is Growing Sales Again -- but Not by Boosting Prices