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Shares of the world’s largest pizza chain dropped 4% in premarket trading as Domino’s said it saw lower order volumes during the quarter.
Higher labor and raw material costs have forced restaurant chains, even the biggest names including McDonald’s (NYSE:MCD), to jack up menu prices and delivery fees, which hurt cost-conscious consumers whose budgets are already squeezed by sticky inflation.
Domino’s U.S. same-store sales rose 0.1% in the second quarter, compared with analysts’ estimates of an about 0.2% increase.
In a bid to boost its sluggish delivery business, the pizza maker partnered with Uber (NYSE:UBER) earlier in July, which will allow its customers to place order on the ride-sharing company’s food delivery apps Uber Eats and Postmates.
The service will be rolled out in four pilot markets in the U.S. in the fall.
“Over two-thirds of our stores around the world will have the ability to take orders from Uber Eats,” Domino’s CEO Russell Weiner said in a statement on Monday.
Domino’s total revenue fell 3.8% to $1.02 billion in the three months ended June 18, compared with analysts’ estimate of $1.07 billion, according to Refinitiv IBES data.
But the fast-food chain reported a profit of $3.08 per share, above Refinitiv estimate of $3.05.
