A：Joe Jordan's key priorities as the new CEO of Domino's include serving customers with delicious food, outstanding value, and a great experience; supporting franchisees; and executing with discipline to drive long-term growth.

A：The QSR industry in the US struggled with order counts during a difficult macroeconomic period, experiencing flat order counts. However, demand for Domino's remained strong, with a meaningful increase in order counts in both the delivery and carryout businesses compared to competitors.

A：Domino's has made changes to its 2026 marketing calendar for the second half of the year to better align with competitive and macro environments. The changes include an improved 'Best Deal Ever' promotion and a pizza innovation in Q3 that is described as unlike anything offered before, designed to address an unmet consumer need while protecting core pizza occasions.

A：Domino's plans to bring a new product to market later in the quarter, which will address an unmet consumer need and be unique to the brand. The exact timing of the new offering is pending further details.

A：The CEO remains very bullish on the business, highlighting the brand's strength and the weakening competition as reasons for optimism.

A：Income from operations increased due to higher US and international franchise royalties and fees, and gross margin dollar growth within the supply chain, which was partially offset by higher dental and administrative expenses.

A：Global retail sales grew due to global net store growth of almost 1000 stores over the past 12 months and retail sales grew by 1.9% in the US, driven primarily by net store growth and same store sales grew 0.1%.

A：The CEO described the business as impacted by a challenging macro environment, pressuring consumers, and heightened competition, resulting in a lower average ticket and a mix that was below expectations.

A：The QSR pizza category is growing, with Domino's continuing to take share. Category growth is being driven by the dine-in channel as consumers return to pre-Covid habits. Domino's US same store sales grew 2.3% and international sales increased 4.1%, excluding the impact of foreign currency.

A：The company expects US same store sales to be up to low single digits, international sales store sales growth of up low single digits, and global retail sales growth of mid single digits. They also continue to expect operating income growth of mid to high single digits, excluding the impact of foreign currency, refranchising gains, and the gain on the sale of the corporate aircraft.

A：The new product is expected to target an occasion in the market that the pizza category has not adequately addressed.

A：Russell has been congratulated for his amazing career at Domino's, and Joe has been congratulated on his big CEO promotion.

A：The company has acknowledged the competitive challenges and made changes to address them, such as enhancing their marketing strategies and improving operational efficiency.

A：The company is now the leading pizza brand, with a greater distance from its competition than ever before, giving it a significant advantage in driving market share.

A：The company's strategy is to be the largest player on third-party delivery services, maintaining a premium pricing strategy to achieve profit neutrality for franchisees, and optimizing operations to ensure that products are delivered quickly and at the right temperature.

A：The company ensures product quality for delivery through third-party services by setting up back-of-house operations for 'just-in-time' pizza making, optimizing delivery times, and using orchestration agents to manage order flow and ensure hot delivery.

A：The approach to profitability when expanding into third-party delivery services involves being thoughtful about growth, maintaining profitability, and using this as a guiding philosophy for the management team.

A：The US comp performance in the second quarter had meaningful order count growth that was offset by a ticket decline. The magnitude of the changes was not quantified but was positioned as a significant dynamic to consider in the quarter's performance.

A：The premium series intended to replace the BAME John Soft cross from the previous year did not achieve the necessary results, leading to a shortfall in ticket sales and a decrease below expectations. However, the company views the auto growth prospect as very sustainable due to ongoing efforts with renowned value promotions, current promotions with Le, and continued support from aggregators for driving more occasions.

A：The business experienced meaningful auto growth and met expectations, driven by increases in orders on both delivery and carryout. This indicates a healthy performance across segments and a potential for driving market share.

A：The company's loyalty program is closely linked to account growth, as profitable orders from the program add millions of people to the loyalty flywheel. This flywheel effect is crucial for the company's future success, closely correlating with franchisee profitability.

A：The issue with ticket sales was attributed to factors within the business, and the company is committed to executing its plans effectively to balance the ticket and continue driving share growth.

A：The recent test's failure to meet expectations was acknowledged, but the company is optimistic about the future impact of its messaging adjustments and the upcoming new product. Despite missing expectations, the test provided learnings that will be applied to ensure future product launches meet or exceed expectations.

A：New customers are mainly attributed to the loyalty program, which has grown significantly, and the aggregator channel, which has allowed the company to acquire more customers than would have been possible otherwise. The impact on the mix of orders is not considered to be a notable drag, as the company has managed to engineer this growth effectively.

A：In the third quarter, the promotional strategy shifted from the Amazon stuff cross to the 'Best Delivered' promotion. The inclusion of Parmesan Starcraft in the 'Best Delivered' level is anticipated to be a significant driver of sales, alongside a modest impact on sales tickets in Q3 due to the lapping effect.

A：The company is confident in their guidance for same store sales to be in the low single digits for the full year. Although they are not happy with the ticket outcome in the second quarter, they remain confident in the momentum of order count growth and its effect on incentivizing unit growth.

A：Franchisee profitability has been under pressure due to headwinds in the environment and the company's strategy not achieving its intended objectives. This has a short-term impact on franchisee profitability, but the issue is identified and being fixed in the back half of the year, suggesting that unit growth could see some rebalancing in response to these pressures.

A：The company acknowledges the issue with franchisee profitability and is working on fixing it in the back half of the year. They believe that the situation will take care of itself over time and are confident that they will get back on track.

A：The company typically revises financial projections once they complete the budgets at the end of the year, and they will discuss 2027 projections at that time.

A：The company believes that it can continue to take share in the mature pizza category, which has grown 1 to 2% over time. They are optimistic about their ability to achieve a significant portion of the growing category's sales, as they have demonstrated in the past.

A：The stance on unit development is focused on optimizing the performance of existing units rather than just expanding. There has been little to no store closure in the past, and the emphasis is on enhancing same unit profitability and potentially consolidating stores to improve performance.

A：The 'chicken dippers' were launched by a franchise group and they were reportedly very happy with the launch. However, the company is not yet ready to report their results publicly, suggesting a positive reception by the franchisee.

A：Dine In Channels have shown positive momentum and while not a direct competitor, Domino's views more people in the pizza category as helpful, especially as they continue to grow order counts.

A：Domino's has historically gained share from independents, including 3 points out of 9 gained over eight years. They focus on long-term competitive gains and believe they can continue to take share from competitors like independents.

A：Strength in the Navigator business did not solely explain the second quarter's ticket mix but rather was part of the overall puts and takes influencing the results. The performance was impacted by the mix of products customers chose and by the reduction in lower-margin transactions by competitors, which affected Domino's same-store sales.

A：In the second quarter, the international business saw a drag due to macro and geopolitical factors, which impacted same-store sales. Additionally, the performance of Domino's Pizza Enterprises was impacted by their management approach, specifically the decision to reduce lower-margin transactions leading to a decrease in order counts.

A：The new Chief Operating Officer, Andrew Gregory, has a 30-year background in the restaurant business, primarily with McDonald's. The focus will be on a reboot of the profit side while rebuilding order counts. The company plans to offer the right kind of value to customers to recapture order counts, leveraging their strong market position.

A：The introduction of new products in the third quarter is expected to create a new occasion for Domino's without compromising the core pizza occasions. While there may be pressures on the ticket, the focus is on incremental gains and bringing in new customers, which is believed to balance out any negative impact.

A：Franchising profitability has been constrained by the premium pricing strategy, which negatively impacted franchisee profitability in the second quarter. The company recognized this and is taking steps to fix it, with adjustments embedded in their plans. In the short term, there was a negative impact on profitability, but it's not expected to affect long-term franchise profitability. The focus is on maintaining a balance across auto account growth, customer acquisition, building frequency, and disciplined pricing to drive franch profitability.