Domino's CEO slams the summer of value meals

• Domino's CEO criticized the value meals offered this summer by competitors in a Bloomberg interview.
• While most companies are reporting slowdowns in fast-food spending, the pizza company saw order growth.

According to Domino's CEO, smaller burgers are no way to make people happy.

In an interview with Bloomberg, Russell Weiner took aim at the size of his competitors' value meals, which often include burgers. The biggest fast-food companies are promoting discount deals in the US this summer, hoping to draw in inflation-weary consumers who have been spending less.

Meanwhile, Domino's saw the number of orders rise across all income groups, it said in a second-quarter earnings report last week.

That's thanks to Domino's decision to provide discounts on a wider menu, unlike some of its fast-food competitors that are only marking down a few items, Weiner told Bloomberg.

"It's like, 'Hey, the rest of our menu is expensive, but you can get this one thing you may or may not like cheaper,'" Weiner said. "If you want a big sandwich and you end up getting a little sandwich cheaper, you're not happy."

Domino's offers a $6.99 meal, called the "Mix and Match" deal, that lets customers buy any two items, including pizzas and cheesy breads. It has offered the deal, which cost $5.99 until 2022, since 2009.

The Mix and Match deal means that "people never have to doubt what they're going to see when they come to Domino's," Weiner told Business Insider this week.

"It also means we don't need to do anything over-the-top," including offers that "actually may not even be what people want," he said.

Weiner also said that Domino's didn't raise costs as much as some of its competitors have over the last few years, which means it doesn't need to discount as deeply now. Fast-food prices increased rapidly in 2022 and 2023, leading some customers to eat more at home or seek options that they perceive as a better value.

Weiner's comments come during a summer of value meals in the US — with nearly every major outlet creating bundles to attract price-sensitive customers.

Wendy's, Burger King, and Taco Bell have launched versions of meals under $7. McDonald's, which was one of the first to launch a $5 meal, will extend its offer until August.

For example, McDonald's version offers customers either a McChicken or a McDouble — and four-piece McNuggets, fries, and a small drink for $5.

While McDonald's offer seems to have gotten more customers ordering at the chain, some diners criticized the $5 deal when the company announced it, saying it should've been a permanent menu option instead of a limited-time promotion.

Weiner added that other sales growth came from regulars ordering more frequently, as well as more first-time orders.

Domino's stock is also fairing better than other fast-food giants.

It is up about 3% year-to-date, while Wendy's and McDonald's have both seen a 14% slide from the beginning of the year. Burger King's parent, Restaurant Brands International, has fallen 9% in the same time period.

Still, a better value strategy has not been enough to fully satisfy Domino's investors.

The company's shares fell 14% on July 18 after it reported earnings and said that it would shutter about 100 stores in Japan and France run by its international franchisee.