The Liberty Daily 
(ZeroHedge)—Domino’s Pizza shares fell 3% in the early US cash session after the quick-service restaurant chain reported weaker-than-expected same-store sales growth in the US and internationally, despite earnings and revenue that beat Bloomberg Consensus estimates.
US same-store sales rose .3%, below the .72% Bloomberg Consensus estimate. International comparable sales rose only 0.2%, missing expectations of 1.19% growth.
The dismal earnings results lead us to Bloomberg reporter Ann Gehan’s note on how budget-conscious consumers and the “proteinmaxxing” trend have shifted consumer tastes from pizza to chicken.
Gehan adds more color:
Pizza chains including Domino’s, Papa John’s International Inc. and Pizza Hut, now owned by private equity firm LongRange Capital, face an uphill battle as budget-conscious consumers eat out less and, when they do, increasingly favor chicken amid the “proteinmaxxing” trend.
Gehan provided a chart showing pizza QSR chains struggling while chicken-focused QSR chains and Cava report stronger same-store sales growth so far this year.
The divergence suggests chicken- and protein-focused meals are capturing a larger share of spending at select US QSR chains. For budget-conscious consumers, the combination of affordability and the “proteinmaxxing” trend may be shifting meal preferences toward chicken. Then again, take a GLP-1 to curb cravings.
