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The
pizza chain, known to have popularized fast delivery of hot
pies, faces competition from aggregators such as Uber Eats,
Postmates and GrubHub <GRUB.N> who offer promotions and delivery
from a list of restaurants serving a variety of cuisine at low
prices.
Domino's is also one of the largest chains to stay off
third-party delivery apps altogether, as more restaurant chains
become heavily dependent on meal-delivery companies to boost
sales at the cost of lower profit margins.
Rivals Yum Brands-owned <YUM.N> Pizza Hut and Papa John's
International Inc <PZZA.O> and small players like MOD Pizza and
Blaze Pizza have all tied up with third-party apps to deliver
food.
Ann Arbor, Michigan-based Domino's has also been aggressively
opening new restaurants in a move it calls "fortressing" to
facilitate faster delivery to locations beyond homes and
offices, ranging from beaches to bus stops.
Same-store sales at restaurants open for more than an year in
the United States rose 2.4%, its slowest growth in at least 15
quarters. Analysts had estimated a 2.84% rise, according to IBES
data from Refinitiv.
The slowdown in the market came despite the company offering
half-off on online orders for a week in August and launching a
20% off for late-night orders in September.
Its international business climbed only 1.7% higher, missing
estimates of a 2.86% rise.
The company's net income rose to $86.4 million, or $2.05 per
share, in the third quarter ended Sept. 8, from $84.1 million,
or $1.95 per share, a year earlier.
Total revenue rose 4.4% to $820.8 million, missing analysts'
estimate of $823.9 million.
(Reporting by Praveen Paramasivam in Bengaluru; Editing by Maju
Samuel)
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