Domino's Q1 Misses Estimates; Shares Drop 9%

Domino's Pizza reported first-quarter results that fell short of Wall Street expectations on Monday, with U.S. same-store sales rising 0.9 percent and global retail sales increasing 3.4 percent, prompting shares to drop more than 9 percent in morning trading.

Revenue reached 1.15 billion dollars, up 3.5 percent from the prior year but below analyst estimates of about 1.16 billion dollars. Earnings per share came in at 4.13 dollars, down from 4.33 dollars a year earlier and missing forecasts of 4.27 dollars. The decline stemmed partly from a 30 million dollar charge related to the company's investment in DPC Dash, a food delivery service using independent contractors. International same-store sales dipped 0.4 percent.

Executives attributed the softer performance to intensified consumer pressures, particularly in March, when sentiment reached lows comparable to pandemic levels amid ongoing inflation. Inclement weather early in the quarter and heightened promotional activity from competitors like Papa Johns and Pizza Hut also weighed on results. Papa Johns promoted Papa Pairings, a 6.99 dollar mix-and-match deal for two or more items, while Pizza Hut offered a 7 dollar Deal Lovers...