U.S. same-store sales grew just 0.9% in the first quarter, well below analyst expectations of a 2.72% rise
A first-quarter U.S. same-store sales figure of 0.9% fell well short of what Wall Street had anticipated — analysts tracked by LSEG had forecast a 2.72% gain, Reuters reported. It was the first time in four quarters that Domino $DPZ's had come in below expectations on that metric.
International same-store sales fell 0.4%, excluding foreign currency impact, also coming in below the estimated 0.7% gain.
A $30 million pre-tax charge related to the company's stake in DPC Dash, a fast-food restaurant operator, weighed heavily on the bottom line, pulling diluted earnings per share to $4.13 — down from $4.33 in the same quarter last year and short of the $4.27 consensus estimate cited by Reuters.
Total revenues rose 3.5% to $1.15 billion in the quarter ended March 22, compared with $1.11 billion in the same period a year ago. Income from operations increased 9.6% to $230.4 million. Net income fell 6.6% to $139.8 million.
Domino's stock fell 5% in premarket trading after the results were released.
On the menu and promotions front, the chain has brought back deals including the $9.99 "Best Deal Ever," "Mix and Match," and "Emergency Pizza," while also launching a new Parmesan-stuffed crust pizza as it works to win over cost-sensitive diners, Reuters reported.
"In an intensifying macro and competitive environment, our scale advantage and best-in-class store level profitability uniquely position Domino's in the QSR Pizza category to sustain the value and innovation customers demand," CEO Russell Weiner said in a statement.
Global retail sales grew 3.4%, excluding foreign currency impact. The company added 180 net new stores during the quarter, bringing its total to 22,322 locations across more than 90 markets.
The company's board approved a $1 billion share repurchase program, adding to $290.2 million previously remaining in its buyback authorization, for a total of $1.29 billion available for future repurchases. During the quarter, Domino's repurchased 188,304 shares for $75.1 million.
The board also declared a quarterly dividend of $1.99 per share, payable June 30 to shareholders of record as of June 15.
Earlier this year, Domino's had projected full-year U.S. same-store sales growth of 3% for fiscal 2026, anticipating that the stronger gains would be concentrated in the first half of the year rather than the second, Reuters noted.
