Domino’s Pizza missed sales and profit estimates for the second consecutive quarter, underscoring pressure from weak demand, intensifying competition, and macroeconomic uncertainty.

Quarterly Sales Slide

The pizza giant’s quarterly sales have slid for the past few quarters as fears of higher living costs and a sluggish job market in the U.S. discourage consumers from splurging on discretionary purchases, including dining out.

Same-store sales in the U.S. rose 0.1% for the quarter ended June 14, short of analysts’ estimates for a 0.62% rise. Sales rose 3.4% a year ago.

Escalating Middle East tensions have increased uncertainty, driven up oil prices, and raised concerns over higher fuel and transport costs that could fuel inflation.

Competition and Consumer Sentiment

Domino’s retiring CEO Russell Weiner said the broader U.S. quick-service restaurant industry remains under pressure, echoing his April warning that consumer sentiment had fallen to COVID-19-era lows in March as inflation weighed on spending decisions.

Like its rivals, Domino’s has boosted promotions such as ‘Mix and Match’ and ‘Emergency Pizza’ and added items such as Parmesan-Stuffed Crust Pizza to its ‘Best Deal Ever’ offer to attract value-conscious consumers as competition grows from local, handcrafted pizza makers.

Experts say local pizza shops are capturing market share from larger chains through strong branding, community ties, and authentic offerings.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.