By Evie Liu
Domino's Pizza is increasingly relying on new store openings for growth, rather than higher same-store sales, and that's had investors concerned. The latest quarterly results confirmed those worries.
For the three months ended in March, the pizza chain grew its net revenue by 3.5% from a year ago to $1.15 billion, missing Wall Street's expectations of $1.16 billion. Earnings declined to $4.13 per share from $4.33 a year ago, also missing the expectation of $4.27 per share.
The earnings decline was primarily due to $30 million in losses associated with the company's investment in DPC Dash, a food delivery service that uses independent contractors instead of traditional in-store employees, according to management.
Same-store sales increased 0.9% in the U.S., but declined 0.4% in international markets on weaker consumer spending. Still, global systemwide sales increased 3.4% year over year thanks to new restaurant openings over the past four quarters.
Expansion remains a core growth engine for the pizza chain. Domino's net opened nearly 800 stores globally in 2025, which accounts for store closures as well, and plans to add nearly 1,000 in 2026.
But those plans could come under threat if the global economy worsens.
Jefferies analyst Andy Barish noted this month that fast-food chains' expansion plans could get hit by rising energy costs. Domino's is particularly vulnerable, he said, since nearly two thirds of its unit growth is expected to come in China and India, which rely heavily on energy imports.
Despite the weaker-than-expected results, management noted that the pizza chain has seen positive order count and market share growth in the U.S.
"In an intensifying macro and competitive environment, our scale advantage and best-in-class store level profitability uniquely position Domino's in the QSR Pizza category to sustain the value and innovation customers demand," said CEO Russell Weiner in a statement.
Despite the restaurant sector's struggle in the U.S., Domino's largely dodged the trend as pizza remains a relatively affordable indulgence.
The company has been launching new menu items, promotional events, discount deals, and limited-time offers to attract diners. Management has also invested in digital platforms and loyalty programs to improve customer experience and drive demand.
Notably, the pizza chain -- once known for relying almost entirely on its own delivery network -- established partnerships in recent years with third-party delivery apps to allow customers to order from more channels.
Still, slowing domestic growth and stressed international markets could push investors away from the stock. Domino's shares have tumbled 25% over the past 12 months.
Write to Evie Liu at evie.liu@barrons.com
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(END) Dow Jones Newswires
April 27, 2026 06:05 ET (10:05 GMT)
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