ANN ARBOR, Michigan, April 27, 2026, 14:05 EDT
- Domino’s trimmed its 2026 comparable-sales forecast after seeing diners tighten spending and competitors respond with similar value offers.
- U.S. same-store sales edged up 0.9% in the first quarter, falling short of Wall Street’s projections; international same-store results slipped 0.4%.
- The stock tumbled close to 10%, undeterred by the board’s approval of a fresh $1 billion buyback plan.
Shares of Domino’s Pizza Inc. slumped 9.8% to $331.89 Monday afternoon after the company cut its 2026 sales forecast. Executives pointed to tougher competition and sluggish consumer sentiment, both in the U.S. and overseas, as reasons for the slowdown in demand.
The miss stings for Domino’s, a chain that had built a reputation for consistency in a rougher restaurant landscape. Now, comparable sales—tracking year-over-year numbers at established locations—are drawing sharper scrutiny, as rising costs for food, energy, and transportation continue to squeeze lower-income diners.
Domino’s has trimmed its forecast for 2026, telling Reuters it now anticipates low single-digit gains in both U.S. and international comparable sales. Previously, the company had projected 3% growth in the U.S. and 1% to 2% overseas.
Domino’s Pizza posted a 3.4% gain in global retail sales for the first quarter, stripping out currency impacts. U.S. same-store sales edged up 0.9%, but international comps dipped 0.4%. Revenue landed at $1.15 billion, up 3.5%. Still, net income slid 6.6% to $139.8 million, with diluted EPS dropping to $4.13, down from $4.33 last year.
Chief Executive Russell Weiner, in the company’s statement, said Domino’s managed “positive order count and market share growth” in the U.S. He flagged what he called an “intensifying macro and competitive environment”—a direct assessment for a chain that’s doubled down on scale, coupons, and its franchise model. Domino’s Pizza
Weiner told analysts on the earnings call that results after the quarter got underway fell short of forecasts. He pointed to “COVID level lows” in consumer sentiment, inflation pressures, tough weather, and stepped-up discounts from national pizza competitors that were nearly on par with Domino’s offers. The Motley Fool
Analysts zeroed in on the squeeze for consumers. “Food and energy costs are putting pressure on near-term earnings and could dent spending in the coming quarter or two,” Brian Mulberry, chief marketing strategist at Zacks Investment Management, told Reuters. For Domino’s, the U.S. market is proving “tougher… than anticipated,” according to independent retail consultant Bruce Winder. Reuters
The value wars aren’t just about pizza anymore. Domino’s is pushing deals like its $9.99 “Best Deal Ever,” the “Mix and Match” offer, and the “Emergency Pizza” promo, plus rolling out Parmesan-stuffed crust pizza. Over at McDonald’s and Burger King, bargain hunters are seeing more cheap menu deals as fast-food chains work to keep customers coming. Reuters
Domino’s kept growing, finishing the quarter with 22,322 stores on its roster—180 net additions, including 19 in the U.S. and 161 abroad. Global retail sales? $4.74 billion for the quarter, compared to $4.46 billion last year.
Still, the buyback leaves the core risks on the table. If prices for fuel, groceries, and rent don’t ease up, discounts might not do much to boost profitable traffic—particularly with international same-store sales lagging. Domino’s also noted that it can alter, pause, or end its share repurchase program whenever it wants.
The board signed off on another $1 billion for share buybacks, pushing the company’s total remaining repurchase authorization up to $1.29 billion. Domino’s set its quarterly dividend at $1.99 per share, with payment scheduled for June 30 to shareholders of record as of June 15.
Investors have to weigh if Domino’s can keep pitching value deals without letting that overshadow the bigger story. Management is still targeting 3% same-store sales growth in the U.S. for this year. Still, Monday’s action made it clear that what’s in front of the market right now is driving the trades.
