Domino's Pizza Slides 6% as US Spending Slowdown Bites

Domino's Pizza, Inc. (DPZ) shares tumbled 6% on Monday, February 24, 2025, as the company reported mixed fourth-quarter results and investors fretted over a potential slowdown in US consumer spending. The pizza giant's stock price fell to $483.12 per share, marking a significant decline from its recent highs.



Domino's reported global retail sales growth of 4.4% for the fourth quarter, excluding foreign currency impact, and 5.9% for fiscal 2024. However, US same-store sales growth slowed to 0.4% in the fourth quarter, down from 2.8% in the same period a year ago. International same-store sales growth, excluding foreign currency impact, was 2.7% for the fourth quarter and 1.6% for fiscal 2024.



Russell Weiner, Domino's Chief Executive Officer, attributed the slowdown in US consumer spending to a challenging global macroeconomic environment. He noted that the company's Hungry for MORE strategy, which focuses on four pillars, has been driving strong order count growth, but the recent slowdown in consumer spending may impact the effectiveness of this strategy in the short term.

To mitigate the impact of a potential US spending slowdown and maintain market share, Domino's can implement several strategies. These include emphasizing value and promotions, leveraging loyalty programs, expanding delivery and convenience options, diversifying menu and product offerings, and strengthening franchisee relationships. By implementing these strategies, Domino's Pizza can better position itself to weather the impact of a potential US spending slowdown and maintain its market share.

Domino's international expansion and diversification also help insulate the company from US-specific economic downturns. The company's strong global retail sales growth, steady international same-store sales growth, significant net store growth, and presence on every continent except Antarctica reduce its dependence on the US market and better position it to weather economic downturns in any single region.

In conclusion, Domino's Pizza's recent earnings report highlights the challenges posed by a potential slowdown in US consumer spending. However, the company's strong brand, global presence, and diversified revenue streams, along with its ability to adapt and innovate, position it well to navigate these challenges and maintain its growth prospects in the long term. Investors should closely monitor the company's progress and consider its strategies to mitigate the impact of a potential US spending slowdown.