Domino’s Pizza, the world’s largest pizza chain, reported a miss in quarterly same-store sales estimates. This shortfall can be attributed to inflationary pressures, which have discouraged consumers, particularly those with lower incomes, from eating out or ordering in. The company’s U.S. same-store sales growth reached 4.8%, falling short of the expected 4.91%.
Despite the sales miss, Domino’s saw a strong profit of $4.03 per share, exceeding market expectations. Lower supply-chain costs contributed to this positive result. The company has implemented strategies to attract price-conscious consumers, including a refreshed loyalty program and various promotional offers. These strategies have helped the company to maintain its strong brand recognition and customer base.
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However, Domino’s faces increased competition from other fast-food chains also offering deals and promotions. This intensified competition has made it more challenging for Domino’s to attract and retain customers in a highly competitive market.
Domino’s maintained its long-term global retail sales growth target of over 7%. However, the company suspended its long-term store target after its Australian franchisee announced store closures in Japan and France. This decision reflects the challenges the company is facing in certain international markets.