Domino’s Pizza (NASDAQ:DPZ) posted stronger-than-expected first-quarter earnings, but a slight revenue miss and a rare decline in global store count weighed on sentiment, pushing shares down more than 1% intra-day following the results.
The company reported adjusted earnings of $4.33 per share, topping analyst forecasts of $4.00. Revenue came in at $1.11 billion, just shy of the $1.13 billion consensus.
Global retail sales rose 4.7% in the quarter, excluding currency impacts. However, performance across regions was mixed. U.S. same-store sales slipped 0.5%, while international same-store sales grew 3.7%, offering a bright spot.
Domino’s reported a net global store decline of eight locations during the quarter, with 17 new stores opened in the U.S. offset by 25 closures internationally. This marks an unusual step back for a brand traditionally associated with rapid expansion.
Operating income dipped 0.2% year-over-year, but excluding a $3.2 million hit from unfavorable foreign currency movements, it would have risen 1.4%.
While Domino’s emphasized continued market share gains through its “Hungry for MORE” strategy, the slight contraction in its global footprint and softer U.S. sales signal that broader challenges in the quick-service restaurant space are still in play.