U.S. Markets open in 4 hrs 59 mins
  • S&P Futures

    +11.25 (+0.31%)
  • Dow Futures

    +113.00 (+0.38%)
  • Nasdaq Futures

    +45.00 (+0.36%)
  • Russell 2000 Futures

    +7.40 (+0.40%)
  • Crude Oil

    +0.96 (+2.10%)
  • Gold

    +3.90 (+0.21%)
  • Silver

    +0.21 (+0.86%)

    +0.0018 (+0.1460%)
  • 10-Yr Bond

    0.0000 (0.00%)
  • Vix

    -0.10 (-0.47%)

    -0.0015 (-0.1102%)

    +0.1520 (+0.1464%)

    +87.46 (+0.45%)
  • CMC Crypto 200

    +6.24 (+1.67%)
  • FTSE 100

    +46.67 (+0.72%)
  • Nikkei 225

    -58.13 (-0.22%)

Domino's Pizza reports weak sales, shares tank

Heidi Chung

Domino’s Pizza (DPZ) posted weaker-than-expected sales during the second quarter. Shares of the pizza giant were tanking nearly 4% as of market open Tuesday.

Same-store sales, a key metric for restaurants, grew at a disappointing 3% in the U.S. Consensus estimates were for 4.6% domestic growth during the quarter. Meanwhile, same-store sales internationally grew 2.4%, which also missed analyst expectations for 2.6% growth.

“As a work-in-progress brand, we are constantly striving to improve in needed areas, execute our long-term strategy and build toward Dominant #1 – a goal I continue to feel we are built to achieve,” CEO Ritch Allison said in a statement.

The pizza giant reported adjusted earnings per share of $2.19, better-than-expectations for $2.02 adjusted earnings per share. However, Domino’s posted revenue of $811.6 million during the second quarter. Analysts were anticipating $836.59 million in revenue.

CHICAGO, IL - OCTOBER 12:  Domino's menu items are shown on October 12, 2017 in Chicago, Illinois. Shares of the restaurant chain fell 4 percent today despite reporting an increase of more than 8 percent in domestic same-store sales.  (Photo Illustration by Scott Olson/Getty Images)
A Domino's pizza. (Photo Illustration by Scott Olson/Getty Images)

Domino’s has been struggling to meet consensus estimates for both domestic and international sales, as competition in the fast-food space continues to heat up. Delivery remains a key area of focus for restaurants, and the pizza companies such as Domino’s, Pizza Hut (YUM) and Papa John’s (PZZA) are taking a hit from third-party delivery companies looking to disrupt the industry.

So far this year, Domino’s stock has risen 9% and has been lagging both the broader market and its peers. The S&P 500 (^GSPC) advanced 21%, while Papa John’s jumped 16% and Yum Brands soared 22% in 2019.

Heidi Chung is a reporter at Yahoo Finance. Follow her on Twitter: @heidi_chung.

Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and reddit.

More from Heidi:

Does Amazon Prime Day deliver for investors? It's complicated.

Jobs report smashes expectations

Job cuts during the first half of the year were the highest since 2009: Challenger

U.S. private sector employment grows at disappointingly slow pace

McDonald’s Japan is one of the most popular places on Facebook