Domino's forecasts muted annual same-store sales amid cautious consumers

Domino's Pizza on Tuesday lowered its full-year sales forecast, anticipating muted growth in comparable sales for both its US and international markets. The company cited persistent inflation, increased competition, and cautious consumer spending as factors weighing on demand.

CEO Joe Jordan, who recently joined the company, stated that the macro environment is expected to continue impacting consumers for the remainder of the year, leading to challenging demand across the quick-service restaurant and pizza industry. Jordan also outlined the company's aim to restore profit and order-count growth while expanding its competitive reach.

For the US market, Domino's now expects same-store sales to be at the lower end of its low-single-digit growth forecast. Internationally, comparable sales are projected to be about flat, a reduction from the previous forecast of low-single-digit growth.

In the latest quarter, Domino's reported US same-store sales growth of 0.3%, falling short of analysts' estimates of 0.71%. International same-store sales grew 0.2%, also below the estimated 0.88% rise. Despite these challenges, the company's quarterly revenue reached $1.19 billion and profit was $4.60 per share, both exceeding analyst expectations of $1.18 billion and $4.37 per share, respectively.