Investing.com - Shares of Domino’s Pizza fell midday after the company reported comparable sales numbers that disappointed Wall Street.
Much of the market’s attention was on the big investment bank earnings ahead of trading. But a closer look at Domino’s is warranted in light of recent worries about the stamina of the consumer.
Retail sales came in much lower than anticipated in September and the pizza delivery chain’s results did little to allay fears, despite a strong beat on profit.
Domino’s (NYSE:DPZ) stock lost about 5% at 11:55 AM ET (15:55 GMT).
The company said same-store sales rose 4.9% at U.S. company-owned restaurants, while franchise sales rose 6.4%. Those were both below consensus forecasts. Overall sales of $786 million were also below estimates.
The numbers are particularly disappointing given all the optimism on Domino’s being at the forefront of food delivery technology. Investors will now be looking to see if this is part of a pullback in spending overall by the consumer or more other food delivery companies taking share from Domino’s.
The company was also expected to take advantage of diners switching from Papa John's (NASDAQ:PZZA) following its acrimonious split from its founder.
But Domino’s CEO Richard Allison downplayed that in the conference call, saying that Papa John’s market share is “relatively small,” Restaurant Business Magazine reported.