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Investing.com -- Domino’s Pizza (NYSE:DPZ) Inc. said Monday that it does not expect tariffs to have a material impact on its operating profit, helping underpin confidence in its domestic unit growth and strategic initiatives for 2025. “We source most of our food products from within the country, so we are not expecting tariffs to have a material impact on our operating profit,” CFO Sandeep Reddy told analysts.
The company reaffirmed its full-year guidance for 175 net new U.S. stores despite macroeconomic volatility and tariff concerns affecting some suppliers. “The pipeline for the U.S. is better than it was at this point last year,” CEO Russell Weiner said during the earnings call.
Domino’s reported global retail sales growth of 4.7% in the first quarter, excluding foreign currency impacts, driven by strong international performance and store openings. U.S. same-store sales declined 0.5%, weighed down by macroeconomic pressures and lower traffic among lower-income consumers.
Internationally, same-store sales rose 3.7%, beating expectations, even as executives flagged ongoing geopolitical volatility and macro uncertainty. Retail sales in the U.S. grew 1.3%, with carryout comps up 1% and delivery comps down 1.5%, reflecting continued softness among price-sensitive customers.
The company is banking on several growth initiatives to reaccelerate domestic momentum in the second half of the year, including a full national rollout of its DoorDash (NASDAQ:DASH) partnership in May. Domino’s expects third-party delivery sales to be approximately 50% incremental, providing meaningful tailwinds to same-store sales in the back half of 2025.
Management also highlighted the strong early performance of the new Parmesan Stuffed Crust Pizza, which launched too late in Q1 to contribute meaningfully but is expected to boost mix and drive halo effects for the brand. “We’re really pleased with how things are going,” said Weiner, noting high customer satisfaction scores and strong operational execution.
The company maintained its target of achieving 3% U.S. same-store sales growth for the year, although executives cautioned that persistent macroeconomic headwinds could create downside risks. Still, management emphasized Domino’s continued market share.
Despite macroeconomic headwinds and shifting consumer behavior, Domino’s remains confident in its growth outlook, supported by strong international performance and strategic initiatives like the DoorDash partnership. With minimal impact expected from tariffs and new products gaining traction, the company is well-positioned to strengthen its market presence in 2025.