Domino's Pizza President To Jim Cramer: Wage Pressure Is Actually A Good Thing

Domino's Pizza, Inc. (NYSE: DPZ) reported mixed fourth-quarter earnings Tuesday. The company posted revenues of $642.95 million, above analysts’ expectations of $615.19 million and 17 percent more than what it reported for the same quarter last year. However, the EPS came at $0.91, below analysts’ expectations of $0.93.

Domino's Pizza President and CEO J. Patrick Doyle was on CNBC with Jim Cramer to discuss the company’s performance.

“It was really a terrific quarter for us across the board. The momentum was great – very happy with the results,” Doyle said.

The Success Secret Ingredient

When Cramer asked what Domino's secret behind its tremendous growth over the past year was, Doyle replied simply, “Franchisees are doing well.”

He continued, “They made more money last year than they have ever made. They're excited about the brand and that energy is playing over to them opening stores.

“So, we did over 80 net stores opened domestically. We did almost 750 stores net opened globally. And so the franchisees are excited, and they are investing in the brand.”

Related Link: Morgan Stanley Is Eating Domino's Pizza Post Earnings

Wage Wars

While Domino's employees have made strides toward opening their own franchisees, Wal-Mart Stores is still stuck in an employee wage war. Doyle responded to the situation by explaining the atmosphere of Domino's and its devoted employees.

“Over 90 percent of our franchisees started as hourly workers,” Doyle said. “Our drivers are on average making more than the kind of the $10 that Wal-Mart was talking about with their tips, but I think the best is news that you start to get some wage pressure, because that means the economy is doing better.”

He continued, “I have always said that the best predictor of same-store sales for us is more people being employed. So, more people being employed means they are going to buy more pizza. If that puts some upward pressure on wages, that’s actually a great thing.”