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Domino’s sales numbers didn’t deliver this quarter. The pizza chain’s stock dropped 10% Monday after reporting U.S. same-store sales rose just 0.9%, missing Wall Street’s 2.3% forecast. CEO Russell Weiner lowered the full-year U.S. same-store sales forecast to low-single digit growth, down from a prior projection of 3%.
But he’s not panicking. Weiner told CNBC he expects other fast-food chains to report similar headwinds from winter weather and weak consumer sentiment, which tanked in March due to spiking fuel prices from the U.S.-Israeli war with Iran.
Domino’s also faced stiffer competition from rival pizza chains. Papa John’s and Pizza Hut both matched Domino’s $9.99 “Best Deal Ever” promotion, while Little Caesars undercut its $6.99 Mix & Match deal with a $5.99 version. Still, Domino’s has a bigger advertising budget than its next two competitors combined, and both Pizza Hut and Papa John’s are exploring sales or going private while announcing plans to close hundreds of restaurants this year.