Domino’s Pizza, the nation’s largest pizza delivery chain, warned investors on Tuesday that its full‑year comparable‑sales growth will remain muted. The company now expects U.S. same‑store sales to land at the low end of a low‑single‑digit increase, while international comparable sales are projected to be roughly flat.
Why sales are expected to stay modest
New CEO Joe Jordan, who took the helm earlier this month, said the macro environment will continue to act as an overhang on consumer spending through the balance of the year. He noted that demand remains challenging across the quick‑service restaurant and pizza sectors, with rising competition, persistent inflation and a softening labor market prompting shoppers to be more cautious about discretionary purchases.
Recent performance
In the most recent quarter, Domino’s reported U.S. same‑store sales growth of 0.3%, well below analysts’ consensus estimate of a 0.71% rise, according to data compiled by LSEG. International same‑store sales grew 0.2%, also missing the 0.88% forecast.
Despite the slower comparable‑sales growth, the company delivered $1.19 billion in quarterly revenue and earnings of $4.60 per share, both topping Wall Street expectations of $1.18 billion and $4.37 per share.
Strategic focus for the new leadership
Jordan emphasized that the priority for the new leadership team is to restore profit and order‑count growth while expanding Domino’s competitive reach beyond the traditional quick‑service pizza market. He added that the company will pursue promotions and new product introductions designed to drive order growth without compromising franchisee profitability.
Analyst Lale Akoner of eToro highlighted the “key test” for Jordan as balancing promotional activity with the financial health of franchise owners, noting that franchisee profitability remains a cornerstone of Domino’s long‑term success.
Outlook and next steps
Domino’s will continue to monitor consumer sentiment and adjust its pricing, marketing and menu strategies accordingly. The company plans to roll out additional limited‑time offerings and explore new delivery channels to capture incremental demand.
Investors will be watching how the chain navigates a competitive landscape that now includes a growing number of fast‑casual pizza concepts and broader quick‑service options. The firm’s ability to sustain franchisee profitability while delivering modest same‑store growth will be a critical metric in the months ahead.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
