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Domino’s (DPZ) flashy stunts don’t seem to be working.
The pizza company’s quarterly results broadly missed Wall Street’s expectations, sending shares of the company down about 7% before the market opened Thursday.
US same-store sales popped 3.6% at company-owned stores and 5.7% at franchises in the last three months of 2018.
But Wall Street analysts expected better performance on both counts. They were looking on average for 6.6% growth in company-owned stores and a 7.25% spike for franchises, according to IBES data from Refinitiv.
Domino’s net income came in at $111.6 million for the quarter, about 19.6%more than the same period the previous year. The company’s earnings per share also fell short of expectations.
Competition among Domino’s, Pizza Hut and Papa John’s is fierce, and the earnings results may signal that Domino’s is struggling to stay competitive.
Last month, Domino’s introduced a promotion which rewards customers for buying pizza, even from a competitor, in an attempt to show off its digital capabilities and get new customers to try its food.
The “points for pies” program is an “example of how we do things a bit differently,” said CEO Richard Allison during a call with analysts on Thursday. He added that the program has been a good way to make news and raise customer engagement with the brand.
Meanwhile, Pizza Hut announced plans to expand its beer delivery program and Papa John’s launched a new tuition reimbursement program for employees that could help brighten its tarnished reputation.
Correction: An earlier version of this article incorrectly stated when Domino’s launched the “points for pies” program.