Key facts
- Domino's Pizza missed sales and profit estimates for the second quarter in a row.
- U.S. same-store sales increased by only 0.1%, falling short of analyst expectations.
- International same-store sales declined by 0.1%, contrary to analyst predictions of growth.
- The company reported a profit of $4.07 per share, below the estimated $4.17.
- Domino's revenue for the quarter was $1.19 billion, slightly exceeding the $1.18 billion estimate.
Domino's Pizza missed sales and profit expectations for the second consecutive quarter, signaling ongoing challenges from weak consumer demand, increased competition, and economic uncertainty. The company's U.S. same-store sales saw a marginal increase of 0.1%, falling significantly short of the 0.62% analysts had projected. This follows a 3.4% rise in U.S. same-store sales in the prior year.
Retiring CEO Russell Weiner noted that the broader quick-service restaurant industry is under pressure, with consumer sentiment hitting lows due to inflation impacting spending decisions. Domino's has responded by increasing promotions and adding value-focused items to its menu to attract budget-conscious customers amidst growing competition from local pizza makers.
Additional pressures include the rising popularity of weight-loss drugs and a general shift towards healthier eating habits, which are impacting national pizza chains. International same-store sales also experienced a surprise decline of 0.1%, contrasting with an estimated 0.5% growth. Despite these headwinds, Domino's second-quarter revenue of $1.19 billion slightly surpassed the $1.18 billion estimate.