Domino's is considering raising its menu prices. CFO Sandeep Reddy announced a planned modest increase in the low-single digits during an earnings call.
Prices in California will see a higher increase. This is to counter the wage rises from new legislation, raising the minimum wage for fast-food workers.
Gov. Gavin Newsom signed this bill last fall. It will become effective on April 1.
Despite the planned price hikes, Domino's reported better-than-expected quarterly results. Year-over-year sales grew by 2.8% in the fourth quarter, surpassing the anticipated 2.2%.
A part of their success is credited to their loyalty program. It gained three million new members last year, and two million more joined after a revamp, CEO Russell Weiner shared.
The Emergency Pizza promotion also played a role in boosting sales. Customers could get a free "emergency pizza" with qualifying orders through early February.
Weiner emphasized the value for customers. "Clearly, customers want value, and we are driving it profitably for our franchisees," he stated.
