Domino's Pizza, Inc.

Thank you for standing by. Welcome to Domino's Pizza's first quarter 2025 earnings conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you'll need to press star 11 on your telephone. If your question has been answered and you'd like to remove yourself from the queue, simply press star 11 again. As a reminder, today's program is being recorded. And now I'd like to introduce your host for today's program, Greg Lemicek, Vice President, Investor Relations. Please go ahead, sir.

Good morning, everyone. Thank you for joining us today for our first quarter conference call. Today's call will begin with our Chief Executive Officer, Russell Wiener, followed by our Chief Financial Officer, Sandeep Reddy. The call will conclude with a Q&A session. The forward-looking statements in this morning's earnings release and 10-Q, both of which are available on our IR website, also apply to our comments on the call today. Actual results or trends could differ materially from our forecast. For more information, please refer to the risk factors discussed in our filings with the SEC. In addition, please refer to the 8-K earnings release to find disclosures and reconciliations of non-GAAP financial measures that may be referenced on today's call. This morning's conference call is being webcast and is also being recorded for replay via our website. We want to do our best this morning to accommodate as many of your questions as time permits. As such, we encourage you to ask one question only. And with that, I'd like to turn the call over to Russell.

Thanks, Greg, and good morning, everybody. As I reflect on the first quarter, I'm proud of how our team effectively executed our Hungry for More strategy. Against the backdrop of consumer and industry headwinds, we drove market share gains across both our US and international businesses. Sustained market share growth reflects the company's ability to control what's under its control, a key to long-term success. Our team is achieving what we set out to do when we introduced Hungry for More late in 2023. When you look at our accomplishments over the last year and a half with insight into some of the unlocks for the remainder of 2025, you can see how our Hungry for More strategic pillars are working together to set us up to drive more sales, more stores, and more profits over the long term. The M in hungry for more stands for most delicious food. We will continue to drive deliciousness with at least two new products every year. In early March, we added arguably the biggest new menu item in our history, Parmesan stuffed crust pizza. This launch is the epitome of what we mean when we talk about our innovation with intent approach. There's a clear purpose behind any product we bring to market, and Stuffed Crust Pizza is one of our best examples. We went from this being the largest gap in our pizza portfolio to having what we believe is the best Stuffed Crust product in the industry. While timing of the launch meant Stuffed Crust didn't have a meaningful impact on Q1, we couldn't be happier with how the launch has gone so far. To date, customer satisfaction scores have been very good, and we've also seen a high mix of orders coming with a stuffed crust pizza. Although it's still early, performance has been tracking to our expectations. We're excited about the impact this product will have not only this year, but as a market share driver for years to come. Prior to this year, the operational complexity of stuffed crust and our high volumes kept stuffed crust off our menu in the U.S., Launching an innovation like this required us to lean into our second strategic pillar, operational excellence. Innovation with intent requires operations with intent. On our Q4 call, I talked about the improvements in our service driven by significant training programs implemented by our operators and franchisees over the last couple of years. These programs work together with improvements in our DomOS technology to make Parmesan stuffed crust a reality. Domino's stores are doing an incredible job executing this product. I want to thank our franchisees and operations teams for their continued effort to achieve operational excellence. This remains a point of difference for Domino's. Our third Hungry for More pillar is renowned value. This has been a key strength for Domino's. We're driving renowned value through national promotions, Domino's rewards, and by growing on aggregator platforms. In the first quarter, we had several value-driving initiatives, such as our Best Deal Ever promotion, that we believe broke through industry clutter. We have a strong slate of initiatives primed and ready to go for the rest of the year, as we will continue to give customers what they want, which is more value in this challenging economic environment. While providing value through our own channel is one part of our renowned value barbell strategy, Tapping into the aggregator marketplace for pizza delivery is the other. We recently announced a partnership with DoorDash, the largest aggregator in the U.S. We began piloting in a small number of stores and are expecting to commence our national launch in May. We expect this rollout to be complete by the end of the second quarter with a meaningful impact from this new partnership anticipated in the back half of the year. So, in the second half of 2025 and beyond, we'll be competing on the biggest aggregator platform in the U.S. with one of the biggest pizza crust types in our industry, two things we could not have said only a few months ago. I wanted to quickly touch on our expectations around incrementality for DoorDash. We're going to need to learn and provide updates on this, but our initial expectations are that it will be approximately 50% incremental. And that would be our expectations for aggregators as we move forward now that we're on multiple platforms. Everything we do at Domino's is enhanced by our best-in-class franchisees. We also see this pillar as our responsibility to be a best-in-class franchisor. In the first quarter, we made some changes to our organizational structure, which you may have seen with the announcement we put out in March, where we elevated Joe Jordan to Chief Operating Officer and promoted Wei-King Eng to head of Domino's International. We also made changes below the executive level for a faster, more efficient structure that aligns with our hungry for more strategy. Our focus at Simplify included the difficult decision to eliminate certain roles, and Sandeep will share some additional color on the financial implications. Moving forward, we believe this new structure will allow us to be quicker to market, And we will continue to prioritize investments that have the greatest impact on our customers, franchisees, and the brand. In summary, we are laser focused on delivering against our hunger for more goals. I believe this will enable Domino's to capture additional market share gains in 2025 and beyond. And this will be how we drive best-in-class results and long-term value creation for our franchisees and shareholders. And I'll hand the call over to Sandeep.