Domino's Pizza (DPZ) shares plummeted 7.69% intraday on Monday after the pizza chain reported first-quarter financial results that fell short of analyst expectations.
The company posted U.S. same-store sales growth of 0.9%, significantly below the estimated 2.72% rise, while international same-store sales declined 0.4% against expectations for a 0.7% increase. Earnings per share came in at $4.13, missing the consensus estimate of approximately $4.27, and revenue of $1.15 billion also fell short of the $1.16 billion forecast.
The disappointing results were attributed to budget-strained consumers cutting back on discretionary spending, including dining out, amid ongoing economic uncertainties, high inflation, and a weak labor market. Additionally, the company's net income was weighed down by an unfavorable $30 million accounting loss related to changes in the value of its investment in DPC Dash. Despite announcing a new $1 billion share repurchase program, investor sentiment turned negative following the earnings miss.
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