Domino’s Pizza shares slid as much as 6% on Monday after the company revealed sales growth far below estimates.
Same-store sales in the US rose 0.4% in the fourth quarter, far below estimates of 1.63% growth, according to LSEG analysts.
The pizza chain’s chief executive, Russell Weiner, said Domino’s would continue to offer discounts and deals as inflation-battered consumers have cut back on dining out.
He said Domino’s will continue to offer special promotions, like its Emergency Pizza deal. The limited-time offer allowed customers to redeem a free medium pizza with two toppings within 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 website said under a description of the deal.
The Michigan-based restaurant chain will also revive its “boost weeks,” which offer customers half off online pizza orders, Weiner said on a post-earnings call.
Domino’s did not immediately respond to a request for further details 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,” said Jim Sanderson, analyst at NorthCoast Research.
Domino’s earnings showed the chain achieved a turnaround in its international business “even in the face of a challenging global macroeconomic environment,” Weiner said in a statement.
International same-store sales grew 2.7%, beating expectations of a 1.46% rise.
Domino’s reported earnings per share of $4.89, falling in line with analyst estimates.
The company said its exclusive delivery partnership with Uber Eats has been extended through May, though Weiner said the company has started negotiations with other delivery platforms. He did not name any specific platforms.
Investors have been hoping Domino’s will expand its delivery partnerships to include Doordash, which could help grow the pizza chain’s customer base, according to RBC analyst Reich Logan.
With Post wires
