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Domino's US Sale Growth Hits Five-Quarter Low As Budget Diners Pull Back
['Tyler Durden']
ZeroHedge News
Domino's Pizza posted its softest US comparable-sales growth in five quarters as inflation and the national average price for regular gasoline above $4 a gallon pressured working-poor consumers.
Second-quarter same-store sales rose a measly .1%, in line with estimates but trailing the growth expected across much of the quick-service restaurant industry (QSR).
Although US same-store sales were roughly flat, the figures "were better than we and investors feared," TD Cowen analyst Andrew Charles wrote in a note.
Domestic same-store sales rose 0.1%, in line with flat consensus forecasts, but international same-store sales fell 0.1% consensus at +0.7%.
However, the long-term guidance still calls for 3% same-store sales growth, and we find it tough to see a path to that in the near term.