Domino’s cuts comparable-sales growth outlook and lowers U.S. store-opening target to 125–150
Key Facts
On October 13, Domino’s lowered its forecast for international comparable-sales growth in 2026 to roughly flat, from its previous expectation of low-single-digit growth, and placed U.S. comparable-sales growth at the low end of a low-single-digit range. The company also cut its target for net U.S. store additions to 125–150 stores in 2026, from a previous forecast of 175 stores. UBS analysts attributed the lower expansion target to pressure on franchisee profitability and higher interest rates. Third-quarter results showed comparable-sales growth below analysts’ estimates in both the U.S. and international markets. The revision highlights the company’s challenge in continuing to expand as demand growth slows and sales momentum eases.
U.S. comparable-sales growth was 0.3% in the third quarter of 2026, versus estimates of 0.71%, according to data compiled by the London Stock Exchange Group and cited by Reuters. In international markets, comparable sales grew 0.2% on a constant-currency basis, compared with estimates of 0.88%. That means sales performance fell short of analysts’ expectations in both segments, while the company revised its full-year international outlook to roughly flat. In the U.S., guidance kept sales at the low end of a low-single-digit growth range. This came alongside a lower store-addition target, which sets the expected net number of U.S. openings during the fiscal year.
Despite weak comparable sales, quarterly results topped estimates for revenue and earnings per share. The company reported third-quarter revenue of $1.19 billion, compared with estimates of $1.18 billion, and earnings per share of $4.60 against expectations of $4.37. The company said higher revenue was mainly tied to increased supply-chain revenue and global franchise royalties. Higher order volumes, along with a 2.2% increase in the price of the food basket supplied to stores compared with the third quarter of 2025, lifted supply-chain revenue. Operating income also rose to $241.8 million from $223.2 million a year earlier, an annual increase of 8.3%.
Company data showed global retail sales growth, excluding currency effects, slowed to 3.2% in the third quarter, compared with 6.3% in the corresponding period of 2025. Chief Executive Joe Jordan said the macroeconomic environment would remain a burden on consumers through the end of the year. A Reuters report said competition, persistent inflation and a weak U.S. labor market had made consumers more cautious about discretionary spending. Jordan said: "We expect the macroeconomic environment to remain a burden on the consumer for the rest of the year." The pressures come as the company seeks to restore growth in profits and orders, according to the chief executive’s remarks.
Domino’s shares fell about 3% in early trading on October 13 after the company announced the outlook cuts. The stock, which trades under the ticker DPZ, closed at $312 on October 29, according to EL7 data. EL7 data showed a close of $309.45 on October 28 and $312.03 on October 27. These prices reflect sessions after the outlook announcement, while the documented early decline relates to the announcement day itself. No open source confirmed the stock’s intraday low during the October 29 session cited in the initial draft.
Jordan said the company aims to restore growth in profits and order counts while broadening competition beyond the traditional pizza-restaurant market. According to the company’s report on the earnings call, details of annual franchisee earnings are expected to be presented during the fourth-quarter earnings call. On shareholder distributions, the board declared a quarterly cash dividend of $1.99 per share, payable on December 30 to shareholders of record on December 15. The company’s announcement set the payment date for December 30, 2026, following the shareholder record date of December 15. These dates remain among the company’s key upcoming financial milestones.