저자: RussellWeiner · 외국인
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도미노피자 CEO는 실적은 컨센서스를 상회했으나 가이던스 하향(국제 순점포 성장 전망 축소, 글로벌 점포 전망 중단)에 대해 해명. 중국·인도 성장 기대와 뉴욕스타일 피자, 'utip' 프로모션, 로열티 프로그램(3천만 명 이상) 등으로 미국 트래픽 성장(동일점 매출 4.8%)을 강조. 자산 가격 전망은 명시적으로 언급되지 않음.
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what do we make of this harsh action in Domino's Pizza lost over 133% of its value last Thursday in response with its latest results you know I'm a big believer in dominoes but even though the company reported a solid earnings beat with inline sales Wall Street was not happy with the guidance see management cut their International annual net store growth Outlook while also suspending the global net stores forecast because of problems at their largest franchisee Domino's Pizza Enterprises so could this be your chance to buy a phenomenal long-term performer on weakness or maybe we need to be a little more worried let's check him with Russell weiner is the new CEO of Domino's Pizza get a better sense of the numbers Mr weiner welcome back to May Money Jim thanks so much for having me I say new but that's only because you we haven't seen you that much I'm so thrill you're here because I think people want to know are is something ay because one thing I've always said about thinus this is the most consistent story I follow but I didn't know about the DPE the and I didn't suspect to pull guidance well you're right on consist the I started in marketing in 2010 we launched the new pizza and you called us at 10 bucks so thanks I got that right you did you did pretty well well it's cuz my kids love doos and then you added the no cheese button and they're vegetarian so it was really fat vegans well so um you know we we we're we've been very consistent over the years what I heard from investors when I talked to them after the call was the DPE thing was a surprise our job Jim as you know is to provide only you know positive surprises we we're supposed to be consistent uh there's a Miss there we had to take guidance down like you said 175 to 275 I met Domino's Pizza Enterprises CEO Don May here in New York a couple of weeks ago that's what our teams are focused on so disappointed yes but at the same time that's not tens of millions of dollars that we're talking about smaller than that but you know Jim we gave a number our jobs to hit it um for perspective though on our international business you we've got 40 to 50% of our growth is coming from China and India right China just increased their store growth targets to from 300 to 350 a year uh India and the six markets jubilant runs uh 5,500 stores a year so when you're a 90 plus markets around the world you're going to have some fits and starts and some but the beauty is you have the other markets to um to you know round things out now the other positive the other piece of information I got from investors was wow on this us business right um because and you know this you've been covering this 4.8% and positive same Source sales is a good number but the quality of those sales are through uh people coming into our stores more it's through traffic traffic in qsr now folks are struggling because prices are a little bit high but you're saying it's not from Price you didn't raise price big and therefore hit the numbers that's not what happened no no no no we we like to think um we have profit power people talk pricing power we price for profits for franchisees which means driving the Top Line it also means really good value for customers I think that's why people are coming to Dominoes now the our value has never been better so today's orders are tomorrow's sales we increase orders on our delivery business carry out business every single income uh segment I don't think anyone's doing that in our IND I want to put this DPE this outfit to rest though uh it's a publicly traded company why did you not get a heads up from them that there were problems why did we learn this on the day of earns yeah well we did they they did announce the day before uh the way our the way our process works every year is we budget with our Master franchises we actually had a pretty conservative number for them this year because last year was a little bit tough we were working together in Q2 and it it it looked like Q2 wasn't going to hit teams got together and said you know what we got to say something as soon as we know and and that's what we did I got it okay now let's talk about uh the things that I think are very exciting uh first let's talk about but you've added you very rarely add something when you do add something it's a big deal you added New York style how's that going yeah it's great you know Jim we uh I call it Innovation with intent you know sometimes you look and people launch products you wonder why why do they do this um we launch about two products a year now with our new hungry for more strategy the question is why New York Pizza not justo or those each have that's an acronym yeah hungry for more more sales more stores more profit how fourways right most delicious delicious food it's all about the products you launch and make them delicious uh operational excellence is the O we're delivering um 10% better than we were two years ago right renowned value that's why we're getting all these people in um and everything we do is enhanced by our our best in-class franchises so the New York style pizza we looked at our portfolio and believe it or not Jim not you not me but there are some people who don't like that one was pizza why they're looking for something a little bit more thin understand and so this is a great product um for those folks and we're bringing incremental eaters into Domino's Pizza now younger people are telling me uh the offering $3 utip we tip promo matters again because people are pinching they're pinching dollars yeah you know the r in hungry for more is about renowned value it's not just value it's not just a price point it's value that people talk about and so all you tip we tip is it's a $3 bounceback you buy pizza you get $3 next time that's boring that's not renowned value but everyone today is pretty frustrated I was telling you a story earlier someone bought a ChapStick the other day and was asked to tip tip for the ChapStick and so we we we kind of just changed the messaging and said hey let's call it utip we tip but the mechanism the same everyone's talking about it no we had an alpha cold 100x and they were on and they measure customer satisfaction and you had the highest customer satisfaction in your segment uh but they said look some of this is just because it's the price value yeah they may not be the super best tasting although you know I happen to love it but the fact is is that you're offering something that seems to be reminiscent of before Co before things went crazy yeah true yeah well the way we look at Value is not just price it's an equation right the price is the denominator the benefits are the numerator so what else can you give people so one of the things I think is great about our price points um is you you can use our national promotions on any item that's a benefit it's not just the pizza it's sandwiches it's pasta it's it's salads it's desserts most people now are getting a little bit of whiplash prices are higher now discounting coming maybe on a certain item well Jim you may not want that item at Domino you can get anything you want uh for our national promotion and those are benefits we feel like the more benefits loyalty program is another one we over 30 million we're somewhere I can confirm we're we're we're definitely over 30 million but we'll give a uh we'll give an update at the of the year um it's every we Chang that program to get more um frequency from our light users and our carrot users and it's really working well look my takeaway is is that first thing you said which is we're not used to getting anything other than positive surprises obviously you're hungry to never have again a negative surprise even though it was International and not necess under your control and even though I don't think it was $10 per share it was it was something that you're not proud of and you're not going to let it happen again nope well that's all that matters to and and focus on that us business you'll see at the end of Q2 this was a really special quarter excellent that's what I want to hear Russell weeders the CEO of Domino's Pizza dpz and you heard it right here they have money back here coming up lightning doesn't just strike twice in CR Amica booah jimy chill booah booah booah thanks for taking my call it strikes every day Kramer is back in a Flash with your questions next
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