ANN ARBOR, MICH. — Domino’s Pizza Inc. posted flat bottom-line results for its fiscal 2024 despite earnings per share that topped Wall Street’s projection and solid top-line growth.

For the quarter ended Sept. 8, net income dipped 0.5% to $146.9 million, equal to $4.19 per share on the common stock, from $147.7 million, or $4.18 per share, a year earlier. Domino’s said the disparity between the net earnings decrease and earnings-per-share increase reflects a lower weighted-average diluted share count from share repurchases over the trailing four quarters.

Analysts, on average, had forecast Domino’s third-quarter EPS at $3.65, with estimates ranging from $3.35 to $4.20.

“In these times, I believe the best measure of a company’s current and future success are the share gains that is achieved,” Russell Weiner, chief executive officer of Domino’s, told analysts in an Oct. 10 conference call on third-quarter results. “In Domino’s US business, we are doing just that, gaining share. Our team and franchisees are delivering incredible results despite a more challenging environment.”

Weiner cited Domino’s “Hungry for MORE” strategy as the catalyst for the share growth. Under the MORE plan, unveiled in December, the world’s largest pizza chain is sharpening its focus on four pillars: “Most delicious food” (product innovation and marketing), “Operational excellence” (led by a new service program), “Renowned value” (customer discounts and rewards program) and “Enhanced by our best-in-class franchisees” (franchisee success).

“Through the first three quarters of the year, our retail sales are up 6.6%, and the QSR (quick-service restaurant) pizza category is growing at less than 2%,” Weiner said. “Hungry for MORE is driving the critical metric to long-term success in this business: more market share. This was our fourth consecutive quarter of same-store sales growth since launching Hungry for MORE, proof that our strategy is working.”

Income from operations for the quarter climbed 5% to $198.8 million from $189.4 million in the prior-year period. Excluding the impact of foreign exchange rates, the gain was 5.7%, the company said.

Third-quarter revenue totaled $1.08 billion, up 5.1% from $1.03 billion a year ago. Domino’s attributed the gain mainly to higher supply chain, US franchise advertising, and US franchise royalty and fee revenues. The company said the increased supply chain revenue primarily reflected higher order volumes and a 1.3% year-over-year rise in food basket pricing to its restaurants.

“Importantly, and something I think continues to be unique in the industry right now, it was also our fourth-straight quarter of positive order count growth,” Weiner said. “Profitable order count growth is the key to improving what are already best-in-class economics for our US franchisees. These economics have been a proven driver of store growth as well, which of course is another way we drive market share. For example, from 2015 to 2023, Domino’s opened approximately 1,750 stores. If you look at our top QSR pizza competitors in aggregate, they closed almost as many doors as we opened during that same time period.”

Domino’s now year-old rewards program has played a pivotal role in boosting order count, as well as comparable sales, Weiner said.

“Today’s order count growth drives tomorrow’s order count growth as well because the strength of Domino’s Rewards brings members back for repeat purchases in the future,” he said. “Domino’s Rewards continues to perform well and was the key driver of our US comp performance in Q3. We’ve officially passed the one-year anniversary of the program, and I expect it to continue to play a critical role driving the business for the next several years.”

On the retail side, Domino’s tallied third-quarter global sales of $4.39 billion, up 5.1% from $4.22 billion a year earlier, excluding the impact of foreign exchange. Both US and international retail sales grew by the same percentage, excluding foreign exchange.

Meanwhile, US same-store sales in the quarter rose 3%, including franchised and company-owned stores, while international locations eked out a 0.8% same-store sales gain, excluding foreign exchange.

“Our US same-store sales continue to be fueled by transaction growth from Domino’s Rewards and our marketing programming,” Weiner said. “We also benefited from 1.6% of pricing, which was inclusive of high single digits in California. Our sales mix from Uber grew to 2.7% for the quarter. Our comp tailwinds were partially offset by a higher carryout mix, which carries a lower ticket than delivery.

“Moving to international, where total retail sales grew 5.1% excluding the impact of foreign currency, this was driven by net store growth which was in line with the updated 2024 guidance that we provided on our last call. Same-store sales were up 0.8% in the quarter, with a slowdown beginning in August. In the quarter, we saw pressure in our Asia, Europe and Middle East markets.”

Weiner said Domino’s also has energized the business via product innovation, including the launch of its new Mac & Cheese dish in late September.

“This offering in our pasta lineup is available in 5-Cheese and Spicy Buffalo, and for those who care, I add a little bacon to mine,” he said. “We originally launched our pasta platform in 2009, and this is the first time we brought product news to the line since then. I’m excited that what this can mean for Mac & Cheese and, frankly, the entire pasta portfolio. A year into Hungry for MORE, I hope our innovation with intent approach to new products is becoming clear to all of you. With Mac &Cheese and last year’s Pepperoni-Stuffed Cheesy bread, we’re bringing news to reignite our existing non-pizza platforms. And with New York Style Pizza, we brought in customers who preferred a pizza offering we didn’t have in our portfolio.”

Looking ahead, Domino’s expects 6% global retail sales growth for fiscal 2024, with income from operations rising about 8% for the year. The company also forecasts global net store growth of 800 to 850 units.

In the third quarter, Domino’s added 24 net new US stores, raising the US store system count to 6,930 (6,639 franchised, 291 company-owned). International store count rose by 48 net new locations in the quarter, increasing the total to 14,072. Overall, Domino’s had 21,002 stores globally as of the third quarter’s end, with net new store growth of 805 over the trailing four quarters.