(Reuters) -Domino’s Pizza missed Wall Street estimates for quarterly revenue on Monday, as elevated delivery fees and higher prices dented demand for its pizzas and chicken wings.
Similar to other restaurant chains including McDonald’s and Starbucks, Domino’s had jacked up its menu prices and delivery fees over the past year to safeguard its margins from higher labor and raw material costs.
However cost-conscious consumers, whose household budgets are already squeezed by sticky inflation, have cut back spending on expensive food items and prefer to cook more at home.
Total revenue fell 3.8% to $1.02 billion in the three months ended June 18, compared with analysts’ estimate of $1.07 billion, according to Refinitiv IBES data.
The world’s largest pizza chain’s U.S. same-store sales rose 0.1% in the second quarter, compared with analysts’ estimates of an about 0.2% increase, according to Refinitiv IBES data.
(Reporting by Granth Vanaik in Bengaluru; Editing by Shinjini Ganguli)
