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Domino's Pizza First-Quarter Results Miss Estimates as CEO Flags Weak Consumer Sentiment

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-- Domino's Pizza (DPZ) reported weaker-than-expected first-quarter results on Monday, with the company's CEO saying consumer uncertainty and inflation weighed on demand late in the quarter.

Per-share earnings in the three months ended March 22 fell to $4.13 per share from $4.33 a year earlier, below the FactSet consensus of $4.28. Revenue rose 3.5% to $1.15 billion, while analysts expected $1.16 billion.

Revenue at US company-owned stores dropped to $82.1 million from $91.6 million. Global retail sales growth decelerated to 3.4% from 4.7%, while same-store sales at international stores contracted by 0.4%.

"(It) represented another quarter of positive order count and market share growth for Domino's in the US," CEO Russell Weiner said during an earnings call, according to a FactSet transcript. "While I was pleased with our start to the year, performance for the rest of the quarter did not meet our expectations, resulting in same-store sales (growth) of 0.9%."

The company's shares fell 8.9% in Monday trading and have dropped 20% this year.

"Pressure intensified throughout the quarter, in particular in March because of growing consumer uncertainty," Weiner said. "Consumer sentiment hit COVID level lows and ongoing inflation continued to impact purchase decisions. Weather also affected our business in the quarter."

US consumer sentiment has slumped, reflecting heightened worries about higher prices and the economic fallout from the Middle East conflict that had intensified in recent weeks before the US and Iran agreed to temporarily halt hostilities.

US consumer inflation accelerated in March as the Middle East conflict sent energy prices sharply higher.

"As a result of the challenging start to the year and increase macro pressure, we now expect our US comp to be up low single-digits in 2026," Chief Financial Officer Sandeep Reddy said on the call. He previously guided US comparable sales for 2026 to grow by 3%.

"We now expect our international same-store sales growth to be low single-digits, primarily as a result of the macro and geopolitical uncertainty across the world," Reddy said. "Due to our lowered sales expectations, we now expect operating income growth of mid-to-high single-digits, excluding the impact of foreign currency, refranchising gains and the gain on the sale of our corporate aircraft."

The company's board approved an additional share buyback program of up to $1 billion, bringing its authorized repurchases to $1.29 billion.

Price: $335.53, Change: $-32.66, Percent Change: -8.87%

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