Domino’s Pizza reported on Monday that its quarterly sales fell short of expectations on Wall Street due to lower demand for its pizzas and chicken wings as a result of increased delivery fees and higher prices. Domino’s Pizza is a fast food restaurant franchise that is comparable to others like McDonald’s and Starbucks.
Domino’s Pizza, much like other restaurant chains such as McDonald’s and Starbucks, has raised the prices of its menu items and the fees it charges for delivery over the course of the past year in order to protect its profit margins from the increased cost of labor and raw materials.
However, customers who are cost sensitive and whose household budgets are already being strained as a result of persistent inflation have reduced their spending on pricey food items and prefer to make more of their meals at home.
According to statistics provided by Refinitiv IBES, experts predicted total sales of $1.07 billion for the three months that ended on June 18. However, actual revenue came in at $1.02 billion, a decrease of 3.8 percent.
According to statistics provided by Refinitiv IBES, the same-store sales of the largest pizza chain in the world increased by 0.1 percent in the United States during the second quarter, which compares to the approximately 0.2 percent growth that analysts had predicted would occur.