Domino's posted a 0.3% increase in U.S. same-store sales for the third quarter, coming up shy of the 0.7% forecast. Overall sales were a touch ahead of consensus, with the lift coming primarily from better performance in the supply chain business and higher global franchise royalty revenues.
Traders were not in the mood for nuance. At one point during New York trading, the shares were down by as much as 9%, and at 10:04 a.m. they were off 3.2%. A Bloomberg chart alongside the report compared U.S. and North America same-store growth across pizza names, noting Domino's Q3 figure is as reported while peers' Q3 numbers shown are estimates.
Same-store sales strip out new openings, which makes them the honest number. Market Briefs covers the consumer economy free every morning.
Joe Jordan, who took over as CEO on Oct. 1, told analysts the top priority in this environment is growing total order count. Orders inched higher sequentially in Q3, but he said the company felt pressure on the average check and on how many items customers add to each order as households grapple with the macro backdrop.
To nudge baskets higher, Jordan said Domino's is expanding its add-on lineup, calling out lava cakes, and rolling out more targeted loyalty promotions. The company also introduced a single-serving pizza called The Domino in late August. In a pre-earnings note, Bloomberg Intelligence's Michael Halen wrote that the launch likely lifted transactions during the quarter, though lower average checks offset those gains.
Last year, Domino's added delivery via DoorDash and introduced a hit stuffed-crust item that lifted sales, making this year's comparisons tougher. Meanwhile, chains such as Domino's, Papa John's International, and Pizza Hut - now under the ownership of private equity firm LongRange Capital - are running into headwinds as budget-minded consumers are dining out less and, when they do, are more frequently opting for chicken amid the "proteinmaxxing" trend. Domino's is based in Ann Arbor, Michigan.
CFO Sandeep Reddy said full-year domestic same-store sales are now expected to land near the low end of the prior outlook for low single-digit growth. He also trimmed the view for full-year operating income growth to a mid single-digit rate. Domino's cut its full-year new unit outlook, citing macro pressure on its development pipeline.
The chain added 175 net new stores in the quarter - the slowest pace since early 2025 - and missed the 223 locations analysts had expected. Reddy said slowing store development should help franchisee profitability.
For your money, here is the takeaway: Domino's is trying to spark more orders while coaxing a bit more from each ticket, all as store growth cools. If you are watching consumer staples and dining budgets, this is a clean read on how far value messaging is carrying households right now.
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