Domino's Pizza (DPZ) has announced mixed second-quarter earnings as higher prices and delivery fees hurt demand for its menu items that include pizza and chicken wings.
The world's largest pizza chain said it saw lower order volumes during the April through June quarter as it raised menu prices and delivery fees, which turned off budget-conscious consumers who are struggling financially with high inflation.
Domino's said that its same-store sales rose 0.1% in Q2, which was below Wall Street’s forecast for growth of 0.2%.
The company’s revenue during Q2 declined 3.8% to $1.02 billion U.S. compared with consensus analyst estimates of $1.07 billion U.S., according to Refinitiv data.
Earnings per share (EPS) in the quarter came in at $3.08 U.S., which was above estimates of $3.05 U.S.
To boost its deliveries, Domino’s announced a partnership with Uber (UBER) earlier in July that will allow consumers to place pizza orders on the ride-sharing company's food delivery apps Uber Eats and Postmates.
Domino’s stock is essentially flat (down 0.66%) over the last 12 months at $385.44 U.S. per share.
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