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Domino’s Pizza posts surprise fall in U.S. same-store sales as demand slows By Reuters

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© Reuters. FILEPHOTO: This is a Domino’s Pizza in Los Angeles California on July 18, 2018. REUTERS/Lucy Nicholson

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(Reuters) – Domino’s Pizza Inc. reported a surprising drop in U.S. sales at the same store on Thursday. This was due to consumers shifting away from pandemic-style food ordering habits.

The shares of the Michigan-based business fell 6% in premarket trading after the company reported a 1.9% decrease in sales of its U.S. restaurant same-stores during the quarter. This was compared to estimates of an increase of 1.89%, IBES data from Refinitiv. Similar-store sales in America had grown 17.5% year ago.

COVID-19 is easing the curbs on Americans who have spent the past year ordering food in restaurants. It has slowed sales at Domino’s which derives most of its revenue from deliveries and take-out orders.

A severe labor shortage in America has further impacted the businesses of fast food chains. This could cause restaurants to reduce their operating hours or limit their capacity.

In the third quarter of 2013, revenue totalled $998m, up from $967.7M a year prior. According to Refinitiv, IBES, analysts had an estimated revenue of $1.04 trillion.

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