Washington: Domino’s Pizza missed U.S. same‑store sales estimates for the first quarter on Monday, as higher living costs tied to ongoing geopolitical and economic uncertainties prompted budget‑strained Americans to cut discretionary spending, including dining out.

Shares of the pizza giant fell nearly 4% in premarket trading.

Consumers, already burdened by high inflation and a weakening labor market, are bracing for another hit from rising transportation costs, which threaten to further push up food prices. This has accelerated a shift toward lower‑cost, at‑home meals and dampened sales across restaurant and fast‑food chains.

Domino’s, which also announced a $1 billion share buyback program, reported quarterly U.S. same‑store sales growth of 0.9%, falling short of analysts’ average estimate of a 2.72% increase, according to data compiled by LSEG.

U.S. consumer sentiment sank to a record low in April, as households remained focused on inflation fallout from the Middle East conflict, while the Federal Reserve’s Beige Book showed continued financial strain and rising price sensitivity. Households have also been tapping into savings to support spending.

The company reported a 0.4% decline in international same‑store sales, compared with expectations for a 0.7% rise, citing pressure from franchisees in regions such as Australia.

To attract value‑focused customers, Domino’s has revived its $9.99 “Best Deal Ever,” alongside promotions such as “Mix and Match” and “Emergency Pizza,” and rolled out menu items including a Parmesan‑stuffed crust pizza.

In February, the company said it expects U.S. same‑store sales to grow by 3% in fiscal 2026, matching last year’s pace, with stronger growth anticipated in the first half than the second.

Domino’s posted quarterly earnings of $4.13 per share, down from $4.33 a year earlier, weighed by a $30 million pre‑tax charge related to changes in the value of its investment in DPC Dash, an investment holding company primarily engaged in operating fast‑food restaurant chains. Analysts had expected earnings of $4.27 per share.