Domino's Pizza Annual Sales Weaken As Stressed Consumers Cut Dining Expenses
By Reuters | 27 Apr, 2026

The world's largest pizza chain is lowering projected 2026 sales growth from 3% to the 0.9% range seen in Q1.

Domino's Pizza forecast weak annual U.S. same-store sales growth on Monday, citing pressured consumer sentiment and intensifying competition, sending the pizza chain operator's shares sliding 10% in early trading.

Consumers, already strained by high costs of living and a weak labor market, are now contending with fresh pressures as Middle East tensions drive up transportation costs, lifting inflation and curbing spending on dining out.

The world's largest pizza chain operator now expects U.S. comparable sales to be up low-single-digits in fiscal 2026, compared with its prior forecast of a 3% rise.

The company's first-quarter U.S. comparable sales growth of 0.9% was below the average of analysts' estimates of a 2.72% rise, its first miss in a year, according to LSEG data. Sales were down about 0.5% a year ago.

"Competition within the QSR pizza space also increased in Q1 as the national pizza players offered deals comparable, if not identical, to the renowned value Domino's has made famous," CEO Russell Weiner said on an earnings call.

Consumer sentiment sank to COVID‑era lows in March, Weiner noted, adding that inflation was weighing on spending decisions.

The company, which also announced a $1 billion share buyback program, posted a 0.4% decline in quarterly international same-store sales, also missing the estimate of a 0.7% rise.

To attract value-focused customers, Domino's has revived its $9.99 "Best Deal Ever", alongside offers such as "Mix and Match" and "Emergency Pizza", as well as rolled out items such as a Parmesan-stuffed crust pizza.

"The firm delivered positive transaction growth, but the weak figure likely reflects the discount intensity needed to lure consumers," Ari Felhandler, analyst with Morningstar, said.

Domino's earnings per share fell to $4.13 for the quarter ended March 22, from $4.33 a year ago, weighed down by a $30 million pre-tax charge related to certain investments. Analysts estimated a profit of $4.27 per share.

(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Shilpi Majumdar and Leroy Leo)