Domino's Pizza Q1 Same-Store Sales Growth Weakens
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 28 2026
0mins
Should l Buy DPZ?
Source: stocktwits
- Domino's Sales Pressure: Domino's Pizza reported a less than 1% growth in same-store sales for Q1, a significant slowdown compared to its historical mid-single-digit growth, and now expects U.S. and international sales growth to be lower than previous guidance, reflecting macroeconomic pressures from high living costs and rising transportation expenses.
- Lucid Delivery Gap: Despite recent funding, Lucid is struggling with a delivery gap, with Q1 deliveries at 3,093 vehicles, slightly down from 3,109 in 2025, primarily due to supplier quality issues affecting SUV production, raising investor concerns about achieving its ambitious production target of 25,000 to 27,000 vehicles for 2026 without further cash strain.
- Cheetah Capital Restructuring: Cheetah Net Supply Chain has implemented a 1-for-200 reverse stock split to stabilize its capital structure, reflecting collapsing liquidity and weakening demand, with new shares expected to begin trading on April 29 under a new CUSIP number.
- Market Reaction: As a result of weakening demand and financial pressures, DPZ, LCID, and CTNT stocks hit new 52-week intraday lows, leading investors to question the stability of company profits, with DPZ and LCID down over 19% and 43% year-to-date, respectively, while CTNT plummeted over 97%.
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Analyst Views on DPZ
Wall Street analysts forecast DPZ stock price to rise
15 Analyst Rating
6 Buy
8 Hold
1 Sell
Moderate Buy
Current: 323.480
Low
370.00
Averages
464.83
High
556.00
Current: 323.480
Low
370.00
Averages
464.83
High
556.00
About DPZ
Domino’s Pizza, Inc. is a pizza company with a significant business in both delivery and carryout. The Company operates through three segments: U.S. stores, international franchise, and supply chain. The U.S. stores segment is comprised primarily of its franchise operations, which consists of franchised stores located in the United States. The segment also operates a network of United States Company-owned stores. The international franchise segment primarily includes operations related to the Company’s franchising business in foreign markets. The supply chain segment primarily includes the distribution of food, equipment and supplies to stores from the Company’s supply chain center operations in the United States and Canada. It is primarily a franchisor, with approximately 99% of its global stores owned and operated by its independent franchisees. In its international markets, the Company generally grants geographical rights to the Domino’s Pizza brand to master franchisees.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Warren Buffett's Latest Investment: Domino's Pizza
- Investment Activity: Warren Buffett's Berkshire Hathaway established a position in Domino's Pizza by purchasing 1.3 million shares at $435 each in Q3 2024 and later added 368,055 shares at $417 in Q4 2025, reflecting confidence in the company with a total holding of 3.35 million shares, representing 9.9% ownership.
- Market Presence: Domino's operates over 22,300 locations globally, generating more than $20 billion in annual revenue, with 99% of its stores owned by franchisees, highlighting its strong market position and stable revenue stream.
- Financial Health: The company's Q1 results showed a year-over-year global revenue growth of 3.4%, with operational income rising 7.9% on a currency-adjusted basis, indicating solid business momentum, and management has authorized a $1 billion stock buyback plan.
- Shareholder Returns: With a dividend yield of 2.4%, double that of the S&P 500, and a total shareholder yield of around 5.5% when including past buybacks, Domino's has doubled its dividend payout over the last five years, demonstrating a commitment to returning value to shareholders.
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- Industry Traffic Decline: According to Black Box Intelligence, restaurant traffic fell 2.3% in March compared to the previous year, indicating that consumers are opting for lower-cost dining options in a high gas price environment, posing ongoing risks for many restaurant chains.
- Applebee's Strategy: To attract budget-conscious consumers, Applebee's is accelerating its rollout of an All-You-Can-Eat special priced at $15.99, aiming to boost traffic and enhance its competitive position in the market amidst rising costs.
- Market Share Shifts: Despite the overall decline in restaurant spending, brands like Chili's and Burger King have seen market share gains, with Chili's CEO noting that strong brands will become stronger, reflecting the dynamic changes in the market under economic pressure.
See More
Restaurant Sales Slow as Gas Prices Rise
- Sales Slowdown: According to Black Box Intelligence, restaurant traffic fell 2.3% in March compared to the previous year, primarily due to rising gas prices, which have led consumers, especially low-income groups, to cut back on dining out.
- Applebee's Strategy: To attract budget-conscious diners, Applebee's is accelerating its rollout of an All-You-Can-Eat special for $15.99, aiming to boost traffic and enhance its competitive position in the market amid rising costs.
- Market Share Competition: Some restaurant CEOs see the rise in gas prices as an opportunity to capture market share from weaker competitors, with Chili's CEO noting an acceleration in their market share as overall restaurant spending declines.
- Diverse Fast-Food Performance: Despite the overall sales slowdown, McDonald's reported a 3.7% same-store sales growth in Q1, driven by increased spending from higher-income consumers, while Burger King achieved a 5.8% growth, highlighting significant performance disparities among brands.
See More
Buffett's New Investment: New York Times
- Investment Moves: Buffett's new position in the New York Times, valued at $351 million, indicates a strategic shift from tech stocks to traditional sectors, potentially altering the overall risk profile of his investment portfolio.
- Digital Subscription Growth: The New York Times added 450,000 digital subscribers in the last quarter, bringing the total to approximately 12.8 million, demonstrating significant progress in its digital transformation and potential for future revenue enhancement.
- Advertising Revenue Surprises: Digital advertising revenue surged to 25%, exceeding expectations of high teens, indicating strengthened competitiveness in the advertising market, which may support future profitability.
- Valuation Concerns: Despite generating $550 million in free cash flow, the New York Times' market cap is nearly $12 billion, resulting in a free cash flow yield of only 4.6%, raising concerns about its valuation and potentially limiting further stock price appreciation.
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Buffett Increases Stake in Domino's Pizza
- Increased Holdings: Buffett's Berkshire Hathaway acquired 1.3 million shares of Domino's Pizza in Q3 2024 at an average price of $435 per share, reflecting ongoing confidence in the company.
- Ownership Stake: Berkshire now owns 3.35 million shares of Domino's, representing approximately 9.9% of the company, further solidifying its investment position in the fast-food sector.
- Financial Performance: Domino's reported a 3.4% year-over-year global revenue growth in Q1, with operating income rising 7.9%, indicating strong business momentum that attracts investor interest.
- Dividend Yield: The company's recent dividend yield stands at 2.4%, significantly higher than the S&P 500, and its dividend payments have more than doubled over the past five years, demonstrating a commitment to shareholder returns.
See More
Domino's Pizza: Buffett's Investment Choice
- Buffett's Investment Moves: In Q3 2024, Buffett purchased 1.3 million shares of Domino's Pizza at $435 per share, followed by an additional 368,055 shares at $417 in Q4 2025, reflecting ongoing confidence in the company, with total holdings reaching 3.35 million shares, or 9.9% of the company.
- Attractive Dividend Yield: Domino's currently offers a dividend yield of 2.4%, which has been steadily increasing over time, making it appealing to investors seeking stable cash flow in a fluctuating market environment.
- Market Risk Considerations: Despite strong market performance, persistent inflation could erode profits, forcing the company to raise prices, which may deter consumers, especially in light of rising health trends impacting pizza orders.
- Cautious Investment Advice: While Domino's Pizza is viewed as a potential investment opportunity, it was not included in the current best stock picks by The Motley Fool analyst team, advising investors to carefully assess market conditions and company prospects before making decisions.
See More
Warren Buffett's Latest Investment: Domino's Pizza
- Investment Activity: Warren Buffett's Berkshire Hathaway established a position in Domino's Pizza by purchasing 1.3 million shares at $435 each in Q3 2024 and later added 368,055 shares at $417 in Q4 2025, reflecting confidence in the company with a total holding of 3.35 million shares, representing 9.9% ownership.
- Market Presence: Domino's operates over 22,300 locations globally, generating more than $20 billion in annual revenue, with 99% of its stores owned by franchisees, highlighting its strong market position and stable revenue stream.
- Financial Health: The company's Q1 results showed a year-over-year global revenue growth of 3.4%, with operational income rising 7.9% on a currency-adjusted basis, indicating solid business momentum, and management has authorized a $1 billion stock buyback plan.
- Shareholder Returns: With a dividend yield of 2.4%, double that of the S&P 500, and a total shareholder yield of around 5.5% when including past buybacks, Domino's has doubled its dividend payout over the last five years, demonstrating a commitment to returning value to shareholders.
See More
Restaurant Chains Face Sales Slowdown Due to Rising Gas Prices
- Gas Price Impact: The U.S. conflict with Iran has driven gas prices above $4.50 per gallon, resulting in a record low for consumer sentiment, with 43% of surveyed drivers cutting back on dining out and takeout, directly affecting restaurant sales performance.
- Industry Traffic Decline: According to Black Box Intelligence, restaurant traffic fell 2.3% in March compared to the previous year, indicating that consumers are opting for lower-cost dining options in a high gas price environment, posing ongoing risks for many restaurant chains.
- Applebee's Strategy: To attract budget-conscious consumers, Applebee's is accelerating its rollout of an All-You-Can-Eat special priced at $15.99, aiming to boost traffic and enhance its competitive position in the market amidst rising costs.
- Market Share Shifts: Despite the overall decline in restaurant spending, brands like Chili's and Burger King have seen market share gains, with Chili's CEO noting that strong brands will become stronger, reflecting the dynamic changes in the market under economic pressure.
See More
Restaurant Sales Slow as Gas Prices Rise
- Sales Slowdown: According to Black Box Intelligence, restaurant traffic fell 2.3% in March compared to the previous year, primarily due to rising gas prices, which have led consumers, especially low-income groups, to cut back on dining out.
- Applebee's Strategy: To attract budget-conscious diners, Applebee's is accelerating its rollout of an All-You-Can-Eat special for $15.99, aiming to boost traffic and enhance its competitive position in the market amid rising costs.
- Market Share Competition: Some restaurant CEOs see the rise in gas prices as an opportunity to capture market share from weaker competitors, with Chili's CEO noting an acceleration in their market share as overall restaurant spending declines.
- Diverse Fast-Food Performance: Despite the overall sales slowdown, McDonald's reported a 3.7% same-store sales growth in Q1, driven by increased spending from higher-income consumers, while Burger King achieved a 5.8% growth, highlighting significant performance disparities among brands.
See More
Buffett's New Investment: New York Times
- Investment Moves: Buffett's new position in the New York Times, valued at $351 million, indicates a strategic shift from tech stocks to traditional sectors, potentially altering the overall risk profile of his investment portfolio.
- Digital Subscription Growth: The New York Times added 450,000 digital subscribers in the last quarter, bringing the total to approximately 12.8 million, demonstrating significant progress in its digital transformation and potential for future revenue enhancement.
- Advertising Revenue Surprises: Digital advertising revenue surged to 25%, exceeding expectations of high teens, indicating strengthened competitiveness in the advertising market, which may support future profitability.
- Valuation Concerns: Despite generating $550 million in free cash flow, the New York Times' market cap is nearly $12 billion, resulting in a free cash flow yield of only 4.6%, raising concerns about its valuation and potentially limiting further stock price appreciation.
See More
Buffett Increases Stake in Domino's Pizza
- Increased Holdings: Buffett's Berkshire Hathaway acquired 1.3 million shares of Domino's Pizza in Q3 2024 at an average price of $435 per share, reflecting ongoing confidence in the company.
- Ownership Stake: Berkshire now owns 3.35 million shares of Domino's, representing approximately 9.9% of the company, further solidifying its investment position in the fast-food sector.
- Financial Performance: Domino's reported a 3.4% year-over-year global revenue growth in Q1, with operating income rising 7.9%, indicating strong business momentum that attracts investor interest.
- Dividend Yield: The company's recent dividend yield stands at 2.4%, significantly higher than the S&P 500, and its dividend payments have more than doubled over the past five years, demonstrating a commitment to shareholder returns.
See More
Domino's Pizza: Buffett's Investment Choice
- Buffett's Investment Moves: In Q3 2024, Buffett purchased 1.3 million shares of Domino's Pizza at $435 per share, followed by an additional 368,055 shares at $417 in Q4 2025, reflecting ongoing confidence in the company, with total holdings reaching 3.35 million shares, or 9.9% of the company.
- Attractive Dividend Yield: Domino's currently offers a dividend yield of 2.4%, which has been steadily increasing over time, making it appealing to investors seeking stable cash flow in a fluctuating market environment.
- Market Risk Considerations: Despite strong market performance, persistent inflation could erode profits, forcing the company to raise prices, which may deter consumers, especially in light of rising health trends impacting pizza orders.
- Cautious Investment Advice: While Domino's Pizza is viewed as a potential investment opportunity, it was not included in the current best stock picks by The Motley Fool analyst team, advising investors to carefully assess market conditions and company prospects before making decisions.
See More
