Domino’s starts the year slowly but maintains a strong outlook

Domino’s Pizza’s first quarter fell short of analysts’ expectations, with U.S. same-store sales growth of 0.9% and global retail sales growth of 3.4%.

On the international side, same-store sales declined 0.4%. The fast-food pizza chain opened 180 net new units in Q1, including 19 in the U.S. and 161 internationally.

During the company’s earnings call Monday, CEO Russell Weiner said Domino’s also generated positive order counts and market share growth but added that the quarter “did not meet our expectations.”

“Pressure intensified throughout the quarter, in particular in March, because of growing consumer uncertainty, consumer sentiment hit Covid-level lows, and ongoing inflation continued to impact purchase decisions,” he said. Investors hit the stock hard. Domino's shares were down more than 9% through mid-morning.

Weiner said inclement weather was also a factor, as was an increase in competitive activity, particularly from Domino’s two biggest peers in Papa Johns and Pizza Hut. Papa Johns, for instance, has ramped up its carryout deals while promoting Papa Pairings, a $6.99 mix-and-match offer for two or more items. Pizza Hut recently ran a $7 Deal Lover’s Menu, featuring two-plus items for $7 each.

“The national pizza players offered deals comparable, if not identical, to the renowned value Domino’s has made famous,” he said.

Despite macro and competitive pressures in Q1, there were plenty of highlights for Domino’s, including the relaunch of the chain’s app and Pizza Tracker. Weiner said the updates include more precise ready times, which can facilitate repeat business. Domino’s also deployed an “orchestration agent” that makes back-of-house production more efficient.

“The agent allows orders to be prepared hot and fresh. For example, if there’s not going to be a driver back in time to pick up a pizza when it exits the oven, this technology can alert a store to hold that order, so it isn’t available until a driver is there,” Weiner said.

Weiner and Chief Financial Officer Sandeep Reddy reiterated that despite the slow start out of the 2026 gate, the company is expected to gain market share this year with a 3% same-store sales growth outlook. Those results will be driven in part by an adjusted marketing calendar, including pizza innovation beginning in May.

“You’re going to see things on the calendar or in media that weren’t on our calendar to start the year, so our plans moving forward will look very different than they were starting the year because we adapt to what’s going on in the broader environment,” Weiner said.

Domino’s is also expected to open 175 new stores this year, which will provide a tailwind, especially as the company’s carryout business continues to gain momentum. During Q1, the chain grew its carryout same-store sales 2.4% and its category share in the channel to 20%. Executives said this continues to be a compelling part of the business as it appeals to pressured consumers who choose to avoid delivery fees.

“Our share growth on carryout continued to be good and we’re happy that we’re growing. We would just like to grow more,” Reddy said. “We have significant runway of growth on the carryout business that we can tap into.”

As for guidance, Weiner pointed out that the first quarter of 2025 was also slow, with same-store sales down 0.5%, and the chain finished the year up 3%.

“Our objective continues to be for the year in the U.S. 3% same-store sales,” he said. “We had a pretty light first quarter last year and folks asked whether we thought we could hit 3% for the year and we did. That remains our focus. That remains our objective.”