Domino's misses quarterly sales, profit estimates on weak demand, competition

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

The pizza giant’s quarterly saleshave slidfor the past few quarters as fearsof higher living costsandasluggish job market in the U.S. discourage consumers from splurging ondiscretionary purchases, including dining out.

Same-store sales in the U.S. rose 0.1% for the quarter ended June 14,short of analysts’ estimatesfor a0.62% rise, according to data compiled by LSEG. Sales rose 3.4% a year ago.

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

Domino’sretiring CEO Russell Weinersaid 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.

The rising popularityof GLP-1 weight-loss drugs and a shifttoward healthier eating are adding pressure on national pizza chains.

Domino’s quarterly profit of $4.07 per share also came in below estimates of $4.17 per share.

Its international same-store sales posted a surprise fall of 0.1%, compared with estimates of a rise of 0.5%. A year ago sales were up about 2.4%.

The company’s second-quarter revenue of $1.19 billion edged past estimates of $1.18 billion.