(Reuters) – Domino’s Pizza on Thursday missed market expectations for quarterly revenue, as higher menu prices and delivery charges discouraged inflation-weary consumers from ordering at the restaurant.
Steeper costs of necessities, including rentals and borrowing costs, have forced consumers to spend their limited household budgets on cheaper home-cooked meals instead of ordering from restaurants, denting demand at Domino’s.
Higher pizza delivery charges have also been a pain point for customers, curbing demand further.
Total revenue fell 3.9% to $1.03 billion in the third quarter ended Sept. 10, compared with analysts’ estimate of $1.05 billion, according to LSEG IBES data.
The company’s same-store sales in the United States fell 0.6% in the third quarter, compared with analysts’ average estimate of a 0.14% rise, as per IBES data from LSEG.
(Reporting by Juveria Tabassum and Deborah Sophia in Bengaluru; Editing by Sherry Jacob-Phillips)
