Domino’s Q1 Revenue Misses by $24M, Cuts U.S. Sales Guidance
Domino’s reported Q1 revenue of $1.151B versus $1.175B expected and EPS of $4.13 compared with $4.31 consensus, prompting a cut to full-year U.S. same-store sales guidance from 3% to low single digits. Delivery comps fell 0.3% while carryout rose 2.4%; operating income rose 9.6% on 0.6pp supply-chain margin gain.
1. Q1 Financial Results
Domino’s posted Q1 revenue of $1.151B, missing consensus by $24M, while EPS of $4.13 underperformed estimates by $0.18. Management reduced full-year U.S. same-store sales guidance from 3% growth to low single digits.
2. Delivery Versus Carryout Trends
U.S. delivery comps fell 0.3% as customers shifted away from paid delivery; however, carryout sales rose 2.4%, driven by fee-sensitive consumers opting to pick up orders.
3. Margin Improvements and Guidance Cut
Operating income grew 9.6%, aided by a 0.6 percentage-point supply-chain margin boost despite a $30M non-cash valuation hit. The company opened 180 net new stores this quarter and approved a $1B share buyback.