Domino's Beats US Sales Estimates as Deals Attract Budget-Conscious Customers

Reuters
1 hour ago

Feb 23 (Reuters) - Domino's Pizza beat Wall Street estimates for fourth-quarter U.S. same-store sales on Monday, as the fast-food chain's value-driven promotions and new menu items fueled demand.

US-listed shares of the company rose about 5% in premarket trading.

Consumers, especially from lower-income households, are increasingly opting for home-cooked meals instead of eating out at restaurants as they tighten budgets amid rising prices on daily essentials, such as groceries and other food items.

Like many of its peers, Domino's is offering more promotions to attract customers, including the relaunch of its "Best Deal Ever" at $9.99, as well as introducing fresh flavors and new menu items, such as Parmesan-stuffed crust pizza.

U.S. same-store sales at Domino's rose 3.7% for the quarter ended December 28, topping analysts' estimates of 3.47%, according to data compiled by LSEG.

Domino's also gained from partnerships with online food-delivery firms such as DoorDash, which helped the pizza chain expand its reach.

"As we look ahead to 2026, it is our expectation that we will meaningfully increase our market share within a U.S. QSR pizza category that continues to grow," CEO Russell Weiner said in the statement.

Meanwhile, international same-store sales rose by 0.7%, missing analysts' estimates of 1.03% increase due to tepid demand and stiff competition in regions such as Australia and Japan.

Weak global demand has intensified competition to attract budget-conscious customers, with rivals such as burger giant McDonald's and Taco Bell-parent Yum Brands also launching value meals starting at $5 to boost sales.

Higher-end chains such as Chipotle Mexican Grill, on the other hand, saw sales decline amid muted spending.

The world's largest pizza chain posted quarterly diluted earnings per share of $5.35, compared with $4.89 reported a year ago, but came in below estimates of $5.37 per share.

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