Reuters reports that
Domino’s Pizza Inc reported a dip in same-store sales in the United States for the first time in over a decade on Thursday, indicating a slowdown in delivery demand for the world’s largest pizza company as customers shift away from traditional habitual food-ordering habits.
As COVID-19 limitations relax, Americans who spent the previous year ordering in have begun to dine out at restaurants, reducing sales at Domino’s, which relies heavily on delivery and take-away orders.
According to IBES statistics from Refinitiv, same-store sales at the company’s U.S. restaurants decreased 1.9 percent during the reporting quarter, compared to forecasts of a 1.89 percent gain.
Its same-store sales in the United States increased 17.5 percent year on year.
With consumers now traveling and dining outdoors, Domino’s performance may set the tone for revenues from other fast-food restaurants that benefitted greatly during lockdowns.
A significant labor shortage in the United States also challenges fast-food chain operations, since a lack of staff may force restaurants to reduce operating hours or capacity.
The international business was a bright light in Domino’s earnings, with same-store sales up 8.8 percent as customers throughout the world continued to rely on food delivery owing to stricter COVID-19 regulations.
Analysts had predicted 7.97 percent growth.
In the third quarter, the pizza chain’s overall revenue increased 3.1 percent to $998 million, falling short of analysts’ expectations of $1.04 billion.
In the fiscal quarter ended September 12, its net income increased 21.5 percent to $120.4 million, or $3.24 per share.
Analysts predicted a profit of $3.11 per share on average.
In premarket activity, the company’s shares, which have climbed more than 24 percent this year, were down roughly 3 percent at $461.