Domino’s Pizza has reported a slowdown in sales in the United States, while sales at its international locations have continued to rise.
Its U.S. sales grew by just 1.3% to reach US$2.24 billion, well below the 7.8% growth seen in 2024’s first quarter. International sales grew by 8.2% to US$2.22 billion, outpacing Q1 2024’s 6.8% growth.
“Domino’s Q1 results demonstrate that our Hungry for MORE strategy continues to drive market share growth in QSR Pizza across both our U.S. and international businesses,” said Domino's CEO Russell Weiner.
“Sustained market share growth reflects a company’s ability to control what is under its control, a key to long term success. In the face of a challenging global macroeconomic environment, our Hungry for MORE strategic pillars are working together to drive MORE sales, MORE stores and MORE profits, annually.”
U.S. outlets also saw a decline in same-store sales. Sales at company-owned locations dropped by 2.9%, compared with 8.5% growth in Q1 2024, and franchise store sales fell by 0.4%. In total, same-store sales in the U.S. were down 0.5%, missing the 0.5% growth forecast by LSEG.
International same-store sales grew by 3.7%, rising from 0.9% year-over-year and besting estimates of a 1.93% increase. The net number of international stores also decreased by 25, while U.S. stores grew by 17.
Total revenue was up by 2.5% to US$1.11 billion, which Domino’s credited to higher revenues in its U.S. franchise advertising and its supply chain. The company’s net income rose by 18.9% to $149.7 million, while its diluted earnings per share were $4.33.
Domino’s reiterated that its target annual growth for U.S. sales is 3%, but did not provide a full outlook.
Domino’s (NASDAQ: DPZ) share price closed at US$490.64, up from its previous close at $487.58. Its market capitalisation is $16.84 billion.
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