Domino's Pizza Cuts U.S. Sales Guidance After Q1 $1.151B Revenue and EPS Miss
Domino's Pizza reported Q1 revenue of $1.151 billion and EPS of $4.13, both below consensus, leading it to cut full-year U.S. sales guidance from 3% to low single-digits after delivery comps fell 0.3% as carryout rose 2.4%. Operating income climbed 9.6% on a 0.6-point supply-chain margin gain while opening 180 stores.
1. Q1 Financial Results
Domino's Pizza reported revenue of $1.151 billion and EPS of $4.13 in Q1, missing consensus figures of $1.175 billion and $4.31 respectively. This performance triggered a reduction in full-year U.S. sales guidance from a 3% increase to low single-digit growth.
2. Delivery vs Carryout Trends
U.S. delivery comps fell 0.3% as carryout orders rose 2.4%, highlighting shifting consumer preferences toward fee-avoiding pickup options. The surge in carryout helped cushion the top-line miss but underscored pressure on the company's core delivery segment.
3. Margin and Operating Performance
Operating income climbed 9.6% driven by a 0.6-point supply-chain margin improvement despite softer sales volumes. A $30 million non-cash valuation hit from an investment did not affect underlying operational profitability.
4. Outlook and Growth Strategies
The company opened 180 net new stores this quarter and authorized a $1 billion share buyback to support valuation. Investors will watch Q2 digital promotions and carryout incentives to gauge whether delivery comps can stabilize.