Domino’s Pizza posts surprise fall in U.S. same-store sales as demand slows

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October 14 (Businesshala) – Domino’s Pizza Inc (DPZ.N) reported a surprise drop in US same-store sales on Thursday, indicating a bigger-than-expected slowdown in delivery demand as consumers ramp up their pandemic food-ordering. Habits are gone. .

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Shares of the Michigan-based company were down 6% premarket as it reported a 1.9% drop in same-store sales at its U.S. restaurants during the reported quarter, according to IBES data from Refinitiv. Its US same-store sales were up 17.5% from a year earlier.

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As COVID-19 curbs, Americans who spent the last year ordering have started eating out at restaurants, which do most of their business from delivery and take-away orders, slowing sales at Domino’s. receives.

Adding to its woes, a severe labor crisis in the United States has also threatened fast-food chain businesses, as labor shortages may prompt restaurants to limit operating hours or capacity.

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The company’s total revenue rose to $998 million in the third quarter, up from $967.7 million a year earlier. Analysts had forecast revenue of $1.04 billion, according to Refinitiv IBES.

Reporting by Deborah Sophia in Bengaluru; Editing by Uttaresh.V

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