Domino’s falls as deals, New York pizza struggle to lure diners

(Bloomberg) — Domino’s Pizza Inc.’s shares fell as second-quarter results showed that discounts and new product launches weren’t strong enough to attract more value-seeking diners.

The chain’s U.S. same-store sales rose 4.8 per cent in the period, slightly below the 4.9 per cent average estimate of analysts polled by Bloomberg. Internationally, comparable sales beat estimates, rising 2.1 per cent.

Shares in Domino’s fell 10 per cent in early New York trading.

Domino’s is trying to stand out in a crowded value battle. In a bid to become the most affordable option for budget-strapped Americans heats up, Domino’s has enticed customers with deals such as two items for US$6.99 each and the launch of New York-style pizza.

In pursuit of growing its digital offerings, it launched on Uber about a year ago and revamped its loyalty program. It has also worked to speed up delivery times. “We had positive order counts in our delivery and carryout businesses,” Chief Executive Officer Russell Weiner said on Thursday.

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