Domino’s Pizza reported a slowdown in sales growth during the most recent quarter, prompting the company to revise its full-year sales outlook downward. The global pizza chain cited a challenging consumer environment marked by increased competition, inflationary pressures, and a softening U.S. labor market that is tempering discretionary spending.

For the quarter, Domino’s posted a modest 0.3% increase in U.S. same-store sales, a significant deceleration from previous periods. Globally, retail sales growth also slowed to 3.2%, compared with 6.3% growth a year earlier. Total revenue for the quarter rose 3.4% to $1.19 billion, and the company still exceeded Wall Street expectations for both profit and revenue. Nevertheless, its shares fell by as much as 5% in early trading following the announcement.

Joe Jordan, who recently took over as Domino’s chief executive, highlighted ongoing challenges facing the quick-service restaurant and pizza sectors. He expressed caution for the remainder of the year, noting that "the macro environment" would continue to pressure consumer demand. The company now anticipates that U.S. same-store sales growth will be at the low end of its previously forecasted low-single-digit range.

The slowdown occurs amid broader shifts in consumer preferences. Data from industry tracker Technomic indicates that pizza has declined in popularity in the United States, currently ranking as the seventh most popular food by sales, down from second place during the 1990s. Analysts attribute this trend partly to changing dietary habits and increased competition from other food categories.

Despite these headwinds, Domino’s remains the world’s largest pizza company and continues to generate growth. However, its tempered outlook reflects a cautious stance on the pace of recovery in consumer spending and signals that the quick-service restaurant industry may face ongoing challenges as inflation and economic uncertainty persist.