Domino's Pizza reported weaker-than-expected U.S. same-store sales for the first quarter, as cost-conscious diners reduced spending on delivery and takeout. The Michigan-based pizza chain said comparable sales in the United States rose only 1.2% in the quarter ended March 22, falling short of analysts' average estimate of 2.5% growth, according to data from FactSet.
Economic Pressures Weigh on Consumers
The miss reflects broader challenges in the fast-food industry, where rising menu prices and persistent inflation have led customers to cut back on discretionary dining. Domino's executives noted that lower-income consumers, in particular, are ordering less frequently or opting for smaller orders. The company's international same-store sales also grew 2.6%, below expectations of 3.1%.
Company Response and Outlook
Domino's has been investing in loyalty programs and promotional offers to attract budget-conscious customers. However, CEO Russell Weiner acknowledged that the economic environment remains challenging. "We are seeing consumers become more selective with their spending, and we are responding with value-focused initiatives," he said in a statement. The company maintained its full-year outlook but cautioned that sales momentum could remain subdued in the near term.
- U.S. same-store sales rose 1.2% vs. estimated 2.5%
- International same-store sales up 2.6% vs. 3.1% estimate
- Stock fell 3.5% in after-hours trading
