Domino's Lowers Annual Outlook as US Sales Growth Slumps

Domino's Pizza reported third-quarter results on Tuesday that revealed a significant slowdown in U.S. same-store sales growth, which fell to 0.3% from 5.2% the previous year. Despite the slump, the company exceeded analyst expectations with total revenue of $1.19 billion and net income of $152.2 million, or $4.60 per diluted share. International same-store sales remained nearly flat with 0.2% growth.

Chief Executive Officer Joe Jordan, who took office on October 1, scaled back the company's full-year guidance. He now forecasts that U.S. same-store sales will trend toward the low end of low-single-digit growth, while international sales are expected to remain roughly flat. Jordan attributed the muted performance to a softening U.S. labor market and persistent inflation.

Following the announcement, shares of the quick-service restaurant chain fell between 2% and 3% in early trading. Jordan stated that the company intends to focus on franchisee profitability and customer proximity to improve everyday performance, though he expects the macroeconomic environment to remain an overhang on consumers for the rest of the year.