Domino’s Pizza shares slid as a lot as 6% on Monday after the corporate revealed gross sales progress far beneath estimates.
Similar-store gross sales within the US rose 0.4% within the fourth quarter, far beneath estimates of 1.63% progress, in keeping with LSEG analysts.
The pizza chain’s chief govt, Russell Weiner, stated Domino’s would proceed to supply reductions and offers as inflation-battered customers have in the reduction of on eating out.
He stated Domino’s will proceed to supply particular promotions, like its Emergency Pizza deal. The limited-time provide allowed prospects to redeem a free medium pizza with two toppings inside 30 days.
“There’s a lot of uncertainty in the world right now and we know Domino’s customers could use a pick-me-up,” the web site stated underneath an outline of the deal.
The Michigan-based restaurant chain may also revive its “boost weeks,” which supply prospects half off on-line pizza orders, Weiner stated on a post-earnings name.
Domino’s didn’t instantly reply to a request for additional particulars on upcoming promotions.
“Going forward, we believe Domino’s will continue to experience modest headwinds to traffic growth in the first half of 2025 as competition remains tough, weather, and other disruptions create volatility and consumers lean into value,” stated Jim Sanderson, analyst at NorthCoast Analysis.
Domino’s earnings confirmed the chain achieved a turnaround in its worldwide enterprise “even in the face of a challenging global macroeconomic environment,” Weiner stated in an announcement.
Worldwide same-store gross sales grew 2.7%, beating expectations of a 1.46% rise.
Domino’s reported earnings per share of $4.89, falling in step with analyst estimates.
The corporate stated its unique supply partnership with Uber Eats has been prolonged by way of Could, although Weiner stated the corporate has began negotiations with different supply platforms. He didn’t identify any particular platforms.
Buyers have been hoping Domino’s will broaden its supply partnerships to incorporate Doordash, which may assist develop the pizza chain’s buyer base, in keeping with RBC analyst Reich Logan.
With Publish wires
