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Domino’s Pizza posts surprise fall in U.S. same-store sales as demand slows

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Oct 14 (Reuters) – Domino’s Pizza Inc (DPZ.N) reported a surprise drop in U.S. same-store sales on Thursday, signaling a bigger-than-expected slowdown in demand for deliveries as customers moved away from their pandemic food-ordering habits.

Shares of the Michigan-based firm have been down 6% premarket after it posted a 1.9% drop in same-store sales at its U.S. eating places throughout the reported quarter, in contrast with estimates of a 1.89% improve, based on IBES information from Refinitiv. Its U.S. same-store sales had jumped 17.5% a 12 months earlier.

As COVID-19 curbs ease, Americans, who spent the final 12 months ordering in, have began to eat out at eating places, slowing sales at Domino’s, which will get most of its enterprise from supply and take-away orders.

Adding to its woes, a extreme labor crunch in the United States has additionally threatened companies of fast-food chains, as a scarcity of employees might push eating places to restrict working timings or capability.

The firm’s whole income rose to $998 million in the third quarter, from $967.7 million a 12 months earlier. Analysts had estimated income of $1.04 billion, based on Refinitiv IBES.

Reporting by Deborah Sophia in Bengaluru; enhancing by Uttaresh.V

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A Domino's Pizza restaurant is seen in Los Angeles, California, U.S. July 18, 2018. REUTERS/Lucy Nicholson

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