by William White | July 24, 2013 2:05 pm
Domino’s Pizza (DPZ) saw an increase in sales during its second quarter, and one menu change is believed to be the main reason for the increase.
Both Domino’s U.S. and international same-store sales climbed 6.7 percent and 5.8 percent, respectively last quarter. The increase in sales comes after Domino’s introduced its new Handmade Pan Pizza last year.
“We’re getting new customers,” Domino’s Chief Executive Officer Patrick Doyle, told Businessweek. “but the order-count growth we’ve been seeing has clearly been coming from more orders from existing customers.”
The pan pizza, which now makes up 20% of Domino’s pizza sales in the U.S., is part of the company’s strategy to release fewer items that sell better.
“We don’t need constant new pizza news or limited-time products to drive our business,” Doyle told Businessweek.
Domino’s made $414.0 million in its second quarter, as compared to $376.1 million the year prior.
DPZ shares were up 2% as of midday Wednesday, continuing a 83% year-to-date run.
Source URL: http://investorplace.com/2013/07/dominos-new-menu-item-is-sales-superstar/
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