Domino’s Pizza shares fall more than 8% after underwhelming sales

Domino's Pizza stock finished down more than 8% on Monday after reporting weaker-than-expected growth in US same-store sales.

Based on estimates from StreetAccount, the chain's domestic same-store sales increased by just 0.9%, less than the 2.3% increase predicted by Wall Street analysts.

Additionally, the pizza company reduced its previous expectation of a 3% gain in US same-store sales to low-single-digit growth for the entire year.

Weiner stated that he anticipates more fast-food companies to report similar challenges from the winter weather and low customer sentiment, which plummeted in March as a result of the Iran war-related spike in fuel prices.

The restaurant chains' earnings season began with Domino's. On Tuesday, Yum Brands, the owner of Chipotle Mexican Grill and Pizza Hut, will be on deck after the bell are anticipated to present their findings on Wednesday. Next Thursday, rival Papa John's will release its financial results.

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Domino's also had to contend with more fierce competition from other pizza chains throughout the quarter. Domino's $9.99 "Best Deal Ever" was matched by promotions at the same price point from Papa John's and Pizza Hut. Additionally, Little Caesars' $5.99 version undercuts Domino's $6.99 Mix & Match offer.

In November, Yum declared that it was considering strategic options for Pizza Hut, including a potential sale. Additionally, Papa John's is allegedly in negotiations to go private with Irth Capital, which is backed by Qatar.

Additionally, both chains have revealed plans to close hundreds of locations this year, which may strengthen Domino's hegemony in the pizza market.

Additionally, Weiner stated that he anticipates a new owner closing even more outlets if either Pizza Hut or Papa John's goes private, which would benefit Domino's.

Over the past year, Domino's shares have lost over one-third of their value. The market value of the corporation is now only about $11.2 billion.