Once Loved Pizza Stock Up 5,000% Is Now Torched. What's Going On? Are We Not Eating Pizza Anymore?

For about a decade, Domino’s Pizza Inc DPZ had a hot run.

In fact, the pizza chain yielded better returns from 2011 to 2021 than Apple Inc AAPL, Netflix, Inc. NFLX or Microsoft Corporation MSFT stock. But recently, the stock is colder than a late food delivery.

After the Ann Arbor, Michigan-based chain unveiled worse-than-expected earnings, citing headwinds like rising input and labor costs, the stock price fell in pre-market trading. Here's a closer look:

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• Domino's lowered its sales outlook for the next few years; It revised the estimate to 4%-8% from 6%-10%.
• The stock opened at $315.15; That's down nearly 10% from Wednesday’s close. Domino's stock is now down more than 44% from its all-time high of around $564 in December 2021.
• DPZ shares are still up 583% throughout the last 10 years (From Feb. 22, 2013 to February 23, 2023).

Papa John’s International PZZA also reported before the market opened, beating EPS and sales estimates. Despite the double beat, the Louisville, Kentucky-based pizza chain is also trading lower Thursday, by about 6%.

So What’s Going On? Domino’s saw “significant pressure” on its delivery business, CEO Russel Weiner says. It’s possible that, due to higher inflation, consumers are cutting out the extra costs associated with food delivery.

There's also a wider variety of choices for what kind of food can be delivered via services like GrubHub and Uber Eats.

Domino’s is trying to innovate to stay ahead of the competition and make up for weaker demand. The company recently released a new product — loaded tots.

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