Domino’s Pizza Inc missed estimates for quarterly revenue on Thursday, as the pizza chain faced stiff competition from rival fast-food chains and restaurants that reopened after the easing of some COVID-19 curbs. Shares of the company were down 3% in premarket trading.
Analysts have raised concerns over the ability of pizza chains, including Domino’s, to keep up heightened sales levels seen during the lockdowns in a post-pandemic world, as more dine-in restaurants open up and compete for customers. Sales at Domino’s U.S. stores open for more than a year rose 11.2%, missing market estimates of 12.48%, according to Definitive IBES data.
Net income rose to $151.9 million, or $3.85 per share, from $129.3 million, or $3.12 per share, a year earlier. Total revenue rose to $1.36 billion from $1.15 billion in the fourth quarter ended Jan. 3, compared with analysts’ estimates of $1.39 billion.–Reuters