Domino’s U.S. same-store sales fall for first time in a decade as demand slows
Oct 14 (Reuters) – Domino’s Pizza Inc posted on Thursday its first drop in U.S. same-store gross sales in over a decade, signaling a slowdown in supply demand for the world’s largest pizza chain as customers transfer away from their pandemic food-ordering habits.
As COVID-19 curbs ease, People, who spent the final yr ordering in, have began to eat out at eating places, slowing gross sales at Domino’s that will get most of its enterprise from deliveries and take-away orders.
Identical-store gross sales on the firm’s U.S. eating places fell 1.9% in the course of the reported quarter, in contrast with estimates of a 1.89% enhance, in line with IBES information from Refinitiv. Its U.S. same-store gross sales had jumped 17.5% a yr in the past.
Domino’s efficiency may set the tone for earnings from different fast-food chains who benefited closely throughout lockdowns, with prospects now turning to touring and eating outside.
A extreme labor crunch in america additionally threatens companies of fast-food chains, as a scarcity of staff may push eating places to restrict working timings or capability.
The intense spot in Domino’s outcomes was its worldwide enterprise, the place same-store gross sales grew 8.8%, as prospects globally continued to depend on meals deliveries because of more durable COVID-19 curbs. Analysts had anticipated the expansion to be 7.97%.
The pizza chain’s complete income rose 3.1% to $998 million within the third quarter, lacking analysts’ estimate of $1.04 billion.
Its internet revenue rose 21.5% to $120.4 million or $3.24 per share within the quarter ended Sept. 12. Analysts on common anticipated a revenue of $3.11 per share.
Shares of the corporate, which have risen greater than 24% this yr, have been down about 3% at $461 in premarket commerce.
Reporting by Deborah Sophia in Bengaluru; enhancing by Uttaresh.V
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