Domino's Pizza misses quarterly sales estimate as demand eases
© Reuters. FILE PHOTO: A Domino's Pizza sign sits on the top of a delivery car outside a restaurant in Los Angeles, California, U.S. July 18, 2018. REUTERS/Lucy Nicholson/File Photo DPZ -0.44% Add to/Remove from Watchlist Add to Watchlist Add Position Position added successfully to:
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(Reuters) - Domino's Pizza (NYSE:DPZ) on Thursday missed market expectations for quarterly revenue, as higher menu prices and delivery charges discouraged inflation-weary consumers from ordering at the restaurant.
Steeper costs of necessities, including rentals and borrowing costs, have forced consumers to spend their limited household budgets on cheaper home-cooked meals instead of ordering from restaurants, denting demand at Domino's.
Higher pizza delivery charges have also been a pain point for customers, curbing demand further.
Total revenue fell 3.9% to $1.03 billion in the third quarter ended Sept. 10, compared with analysts' estimate of $1.05 billion, according to LSEG IBES data.
The company's same-store sales in the United States fell 0.6% in the third quarter, compared with analysts' average estimate of a 0.14% rise, as per IBES data from LSEG.
Domino's Pizza misses quarterly sales estimate as demand eases