Domino’s Pizza sizzled during the health crisis with its online deliveries: the perfect recipe for people stuck at home craving pies. But the world’s largest pizza chain surprised Wall Street Thursday, reporting its first sales drop in over a decade ...
... telling Wall Street its quarterly same-store sales fell 1.9% in the U.S. Analysts had expected an increase. Compare that to the 17.5% jump a year ago. It also signaled a slowdown in delivery demand as consumers resumed dining out.
Domino's performance could set the tone for earnings from other fast-food chains which benefited heavily during lockdowns, with customers now turning to traveling and dining outdoors.
A severe labor crunch in the United States also threatens businesses of fast-food chains, as a lack of workers could push restaurants to limit operating timings or capacity.
One bright spot for Domino’s: international sales grew robustly with customers continuing to order in amid tight restrictions.
But the drop in domestic same-store sales dented its top line. Quarterly revenue rose but missed Wall Street’s targets. Its profit jumped by more than a fifth, but that, too, fell short of analysts’ estimates.
Domino’s shares fell in early trading Thursday, cutting into its year-to-date gain of nearly 25%.