Domino's Pizza reports shocking drop in US same-store sales

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Domino's Pizza reports shocking drop in US same-store sales

Domino's Pizza shows surprise fall in U.S. same-store sales as demand slows Reuters - Domino's Pizza Inc reported a shocking drop in U.S. same-store sales on Thursday, signaling a bigger than expected slowdown in demand for deliveries as consumers moved away from their pandemic food-ordering habits.

Shares of the Michigan-based company were down 6% premarket after it posted a 1.9% drop in same-store sales at its Restaurants during the reported quarter, compared with estimates for a 1.89% increase according to IBES data from Refinitiv. American same-store sales had jumped 17.5% a year earlier, not counting upturns in the U.S.

As COVID 19 curbs ease, Americans who have ordered the last year have started to eat out at restaurants, slowing sales at Domino's, which gets most of its business from deliveries and take-away orders.

Adding to its woes, a severe labor crunch in the United States has also threatened businesses of fast-food chains, as a lack of workers could push restaurant operators to limit operating timings or capacity.

The company's total revenue rose to $998 million for the third quarter, from $967.7 million a year earlier. Analysts expected revenue of $1.04 billion according to Refinitiv IBES.