(Reuters) – Domino’s Pizza on Thursday lowered its international sales forecast for 2024, citing a challenging macroeconomic environment and as consumers cut back on spending.
The group now expects annual global retail sales for 2024 to increase by around 6%, compared to an earlier forecast of 7%.
For the year 2025, retail sales growth is expected to be similar to that of the current year.
Competition has also intensified in the fast food sector, with hamburger chains, including McDonald’s and Burger King, offering meals as low as $5.
U.S. same-store sales rose 3 percent in the quarter, slightly below expectations for a 3.6 percent increase, according to estimates compiled by LSEG.
Despite slowing inflation in the United States, prices, which have increased over the past two years, continue to deter consumers.
Domino’s also reported a 0.8% growth in its international same-store sales in the third quarter, while analysts had expected an increase of 2.9%.
The group now expects net growth in the number of stores worldwide of between 800 and 850 this year, compared to the previous target of 825 to 925 new stores.
Diluted earnings per share were $4.19 in the third quarter, above estimates of $3.65.
(Reporting Juveria Tabassum; Mara Vîlcu, editing by Kate Entringer)
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