US stocks: Domino's Pizza sees weak annual US sales as diners curb spending, shares slump

Domino's Pizza forecast weak annual U.S. same-store sales growth on Monday, citing pressured consumer sentiment and intensifying competition, sending the pizza chain operator's ‌shares sliding ⁠10% in ⁠early trading. Consumers, already strained by high costs of living and a weak labor market, are now ​contending with fresh pressures as Middle East tensions drive up transportation costs, lifting inflation and curbing ​spending on dining out.

The world's largest pizza chain operator now expects U.S. comparable sales to be up low-single-digits in fiscal 2026, compared with its prior forecast ​of a 3% rise.

The company's first-quarter U.S. comparable ⁠sales growth ‌of 0.9% was below the average of analysts' estimates of ​a 2.72% rise, ​its first miss in a year, according to LSEG data. ⁠Sales were down about 0.5% a year ago.


"Competition within the ​QSR pizza space also increased in Q1 as the ​national pizza players offered deals comparable, if not identical, to the renowned value Domino's has made famous," CEO Russell Weiner said on an earnings call.

Consumer sentiment sank to COVID-era lows in March, Weiner noted, adding that inflation was weighing on spending decisions. The company, which also announced a $1 billion share buyback program, posted ‌a 0.4% decline in quarterly international same-store sales, also missing the estimate of a 0.7% rise.

To attract value-focused customers, Domino's ​has revived its $9.99 "Best ​Deal Ever", alongside ⁠offers such as "Mix and Match" and "Emergency Pizza", as well as rolled out items such as a Parmesan-stuffed crust pizza.

"The firm delivered positive transaction growth, but the weak figure ​likely reflects the discount intensity needed to lure consumers," Ari Felhandler, analyst with Morningstar, said. Domino's earnings per share fell to $4.13 for the quarter ended March 22, from $4.33 a year ago, weighed down by a $30 million pre-tax charge related to certain investments. Analysts estimated a profit of $4.27 per share.