Stock falls on weak sales
CNBC • • general
Key Points:
- Domino's Pizza shares dropped 10% in Monday morning trading after reporting U.S. same-store sales growth of 0.9%, below the 2.3% expected by analysts.
- The company lowered its full-year U.S. same-store sales forecast to low-single digit growth from a prior 3% increase projection, citing challenges like winter weather and weak consumer sentiment.
- Increased competition from rivals Papa John's, Pizza Hut, and Little Caesars, who matched or undercut Domino's promotions, contributed to market share pressure during the quarter.
- CEO Russell Weiner remains confident in Domino's long-term prospects, highlighting the company's larger advertising budget and potential benefits from competitors' struggles, including possible store closures and ownership changes.
- Domino's stock has declined nearly 33% over the past year, reducing its market capitalization to approximately $11.2 billion.
