Domino’s Pizza fell short of Wall Street estimates for same-store sales in the first quarter, reporting modest U.S. growth as consumers reined in spending amid persistent cost pressures. The company’s shares dropped nearly 4% in premarket trading following the results.
In the U.S., Domino’s logged same-store sales growth of 0.9% for the quarter, missing the average analyst projection of a 2.72% increase, according to data compiled by LSEG. Management pointed to a broader pullback in discretionary spending as higher living costs - tied to ongoing geopolitical and macroeconomic uncertainties - pushed households toward lower-cost, at-home meals.
Internationally, the chain recorded a 0.4% decline in same-store sales, also falling short of expectations for a 0.7% rise. The company attributed part of the international weakness to pressure from franchisees in markets such as Australia.
Domino’s has taken steps to court value-focused customers. The company brought back its $9.99 "Best Deal Ever" and continued promotions including "Mix and Match" and "Emergency Pizza," while introducing product changes such as a Parmesan-stuffed crust pizza.
On profitability, Domino’s reported quarterly earnings per share of $4.13, down from $4.33 a year earlier and below analysts’ estimate of $4.27. Results were weighed down by a $30 million pre-tax charge tied to changes in the value of its investment in DPC Dash, an investment holding company principally engaged in operating fast-food restaurant chains.
The firm also announced a $1 billion share repurchase program alongside the quarterly results.
Macro indicators referenced by the company underscore the squeeze on consumers. U.S. consumer sentiment fell to a record low in April, and households have been tapping savings to sustain spending. The Federal Reserve’s Beige Book noted ongoing financial strain and increasing price sensitivity among consumers.
Transportation costs, which the company and analysts flagged as a continuing upward pressure on food prices, pose an additional risk to consumer purchasing decisions. Rising logistics and freight expenses can feed into grocery and restaurant prices, reinforcing the trend toward cheaper at-home meal options and putting further pressure on restaurant and fast-food chains’ sales.
Looking ahead, Domino’s reiterated projections it provided in February, when it said it expects U.S. same-store sales to grow by 3% in fiscal 2026, roughly in line with last year, with stronger growth anticipated in the first half of the fiscal year than the second.
For investors, algorithmic selection tools continue to evaluate Domino’s against other opportunities. One such tool assesses DPZ alongside many companies monthly using a broad set of financial metrics and seeks to identify stocks with attractive risk-reward profiles based on current data. That tool cited past notable winners in other names but did not change the company’s reported results or guidance.