(Reuters) – Domino’s Pizza on Monday missed market expectations for fourth-quarter same-store sales, hurt by stiff competition in the fast-food industry as consumers in the U.S. are wooed by value meals.
The company’s shares fell 4% in premarket trading.
Consumers have been mindful of spending on dining out amid higher menu prices, and in response, fast-food chains have ramped up offers and discounts.
The pizza chain is up against stiff competition for affordable menu offering as other fast-food players such as burger giant McDonald’s as well as Burger King stretch their value meal promotions to attract demand.
The company reported a quarterly same-store sales rise of 0.4% in the U.S., compared with analysts’ average estimate of a 1.63% increase, according to data compiled by LSEG.
Gross margin for the quarter ended December 29 was 39.2%, in line with the preceding three-month period.
(Reporting by Juveria Tabassum in Bengaluru; Editing by Maju Samuel)
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