Both Domino’s and Papa John’s reported slumping sales, citing customers returning to pre-pandemic habits, inflation, and ongoing labor shortages.
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Their underwhelming performance comes despite vast efforts to lure customers back to delivery, ranging from robots to cash-back offerings.
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On Thursday, Domino’s reported that same-store delivery sales declined by 6.6%, prompting shares to tumble by 12% — the company’s highest drop since 2010.
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Source: Yahoo! News
In a call with investors, Domino’s CEO Russell Weiner attributed the decline to consumers resuming “pre-COVID eating habits,” inflation’s impact on higher delivery and tip fees, and staffing issues.
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“We believe this dynamic will continue to pressure the delivery category in the short term, as long as consumers’ disposable income remains pressured by macroeconomic factors,” Weiner said in the call.
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