Domino's Pizza Q1 EPS Miss, U.S. Same-Store Sales Grow 0.9%
Domino's Pizza reported Q1 EPS of $4.13, missing estimates by $0.15 on revenue of $1.15 billion. U.S. same-store sales rose 0.9% versus 2.3% expected and international sales fell 0.4%, spurring a cut to full-year U.S. SSS guidance to low-single-digit growth as consumer sentiment hit COVID lows.
1. Q1 Earnings and Revenue
Domino's Pizza reported Q1 adjusted EPS of $4.13, missing consensus by $0.15 on revenue of $1.15 billion versus estimates of $1.17 billion.
2. Same-Store Sales and Guidance
U.S. same-store sales grew 0.9% versus 2.3% expected while international same-store sales declined 0.4%, leading management to lower full-year U.S. same-store sales guidance to low-single-digit growth from a prior 3% forecast.
3. Consumer Sentiment and Competitive Pressures
Management cited consumer sentiment hitting COVID-level lows in March and rising fuel prices as headwinds, with CEO Russell Weiner warning other fast-food chains may face similar struggles and noting increased promotional activity from Papa John's and Pizza Hut.
4. Strategic Initiatives and Shareholder Returns
Domino's continues to invest in digital tools like its modernized app and AI-powered pizza tracker, while the board approved a $1.0 billion share repurchase authorization and declared a $1.99 quarterly dividend.