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Cold Pizza Stocks After Domino’s Comps Struggle

Investing.com - Shares of fast-food companies were down in midday trade on Tuesday after Domino’s Pizza reported disappointing same-store sales during the second quarter.

Same-store sales at company-owned outlets in the U.S. grew by 2.1%, while U.S. franchise store sales rose 3.1%. Both were below consensus estimates.

Shares of Domino’s Pizza (NYSE:DPZ) fell 6.7%, while Papa John's International (NASDAQ:PZZA) was down 3%, Wingstop (NASDAQ:WING) dipped 1.7% and Yum! Brands (NYSE:YUM) inched down 0.6%.

Competition from food delivery apps like Uber Technologies' (NYSE:UBER) UberEats and GrubHub (NYSE:GRUB) has pushed into Domino’s delivery model, which has caused headwinds to its sales that will likely continue for the near future, executives said on an earnings call.

Sales were mostly driven by individuals buying more per order, indicating that traffic was weaker during the second quarter.

The company reported net income of $92.4 million or $2.19 per share, compared to $77.4 million or $1.78 per share a year earlier.

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