Domino's Posts Higher Quarterly Profit but Cuts Sales and Store Growth Outlook
Domino's Pizza reported higher third-quarter net income and earnings per share in its first quarter under CEO Joe Jordan. Revenue increased 3.4%, but global retail sales growth slowed and U.S. same-store sales rose only 0.3%. The company cut its U.S. same-store sales and new-store forecasts, pointing to a tough consumer backdrop and pressure on franchisee profitability.
Domino’s third-quarter net income climbed to $152.2 million, or $4.60 a share, from $139.3 million, or $4.08 a share. Revenue reached $1.19 billion, a 3.4% increase, helped by supply-chain sales and franchise royalties. This was Joe Jordan’s first quarter as CEO.
Global retail sales growth eased to 3.2% from 6.3%. U.S. comparable sales rose 0.3%, versus 5.2%, while international comparable sales increased 0.2%, down from 1.7%. Domino’s lowered its U.S. comparable-sales and new-store projections, citing weaker franchisee economics; its long-term 8,500-plus U.S. store target stayed unchanged.
Domino’s softer U.S. sales and slower store openings could affect franchisees, workers, and local communities tied to its outlets. If franchisee profits remain pressured, some owners may delay hiring, renovations, or expansion, potentially limiting job opportunities and convenience for customers. Investors may also feel the impact through share-price swings and buyback-supported returns. Still, stable order counts and profit growth may cushion the near-term effects, while the company’s long-term store target suggests its broader footprint plans could remain intact.