Domino's Has Unappetizing News for Investors
Investors had low expectations heading into Domino's (NYSE: DPZ) second-quarter earnings report. But the pizza delivery leader still announced some surprises that show mounting challenges for its business.
Sales are still declining in the core U.S. market and are now falling in the international division as well. These drops imply a tougher competitive environment and struggles in passing along sharply rising prices.
The pizza giant's growth thesis isn't broken. Domino's is aggressively expanding its store footprint, for example, and still boasts some of the highest cash returns for franchisees in the industry. But this latest report points to a difficult few quarters ahead for the business.
Source Fool.com
