Domino’s Pizza The delivery problems caused by the worst recession in over a decade have seen their stock plummet most. and Weakening demand led to fourth quarter sales falling short of Wall Street Expectations and The management was forced to lower revenue growth targets. 

The pizza chain’s shares fell by 12% on Thursday. This is the largest decline since 2010. Papa John’s International Inc., which also reported soft North America sales, slumped 6%. They lost $1.7 billion combined in value from market capitalizations.

Domino’s is down 46% from its pandemic peak set in late 2021, when demand from holed-up customers surged. Papa John’s shares are They have fallen 38% since their peak in 2011. Soaring inflation is the current focus. More people are choosing to make their own meals than order them from restaurants. 

Domino’s is also grappling with a driver shortage. Yet executives have been reluctant to tap third-party delivery options, dubbed 3PD, like GrubHub Holdings Inc. or DoorDash Inc., instead seeking to solve that dilemma within the Domino’s system.

These are the quarterly results and Prognosis are A “large step back in the company’s business model recovery and perhaps adds fodder to the bear case that 3PD has permanently altered the competitive landscape for delivery-centric pizza players for the worse,” Jon Tower, Citigroup Inc. analyst, sent a note.

Andrew Charles, a Cowen analyst who rates Domino’s market perform, wrote that Thursday’s results and Guidance “justify revisiting the conversation” Concerning third-party options  

Domino’s said it’s facing “macro-economic headwinds,” Particularly in the US, its delivery business. It lowered its targets of global retail sales for the next two to three years. and Unit growth and These metrics are expected to produce 2023 results. 

Wednesday, however, was another brutal day. shares in Domino’s largest franchisee based on store count, Australia-based Domino’s Pizza Enterprises Ltd. The company Enterprises Ltd. saw its earnings plummet 24% in the second half of 2005. and sales. 

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