Domino's ascends to the next level in the fast-food competition

Challenges in the American fast-food sector are increasing, as a new report from Domino's Pizza illustrates. While U.S. customers curbed their restaurant visits in the third quarter due to rising prices, the world's largest pizza chain recorded a somewhat unsatisfactory growth in U.S. comparable sales of three percent. This fell short of the projected 3.6 percent, according to recent estimates. The sluggish inflation hasn't necessarily prompted consumers to spend more during their restaurant visits, but it has ensured that discounts and special offers gain increased focus. Burger chains like McDonald's and Burger King are leveraging this circumstance to further intensify competition with highly attractive pricing offers. This so-called 'burger battle' could also affect the demand for the often attractively priced pizzas from Domino's, as industry specialists emphasize. With an expected increase in global retail sales of about six percent in 2024, Domino's now presents itself more modestly than before. Originally, a growth of seven percent was targeted. For 2025, a global sales increase on a similar level to the current year is expected. In terms of store development, Domino's now anticipates a global net growth of up to 850 new locations this year, down from a previous target of up to 925. A pleasing highlight of the third quarter: diluted earnings per share were an impressive $4.19, significantly above the forecast of $3.65.