Domino's now expects 125 to 150 net new U.S. stores this year, and its CFO tied the cut to franchisee profitability, not closures. Orders are up; the items in each order are not.
Domino's customers are still ordering. They are just putting fewer things in the cart, and that small shift is now slowing how fast the chain's franchisees are willing to build.
On the company's third-quarter call Oct. 13, chief financial officer Sandeep Reddy said Domino's now expects 125 to 150 net new U.S. stores in 2026, "reflecting increased pressure on our development pipeline from the macroeconomic environment and year to date pressure on franchisee profitability, which we are working to stabilize and return to growth." It was Joe Jordan's first earnings call as chief executive.
The quarter's numbers show where the squeeze comes from. U.S. same store sales rose 0.3%, according to the company's earnings release, rolling over a 5.2% gain a year earlier. Franchise stores were up 0.3% and company-owned stores 1.0%. Order counts grew, but Reddy said the average ticket was hit by "a sequential decline in items per order in both our carryout and first party delivery business." Pricing rose 1.2%.
Costs moved the other way. The food basket Domino's supply chain sells to stores was priced 2.2% higher than a year ago, the company said, while supply chain gross margin rose 0.9 points to 12.2%, which management credited to procurement productivity and route optimization. For a franchisee, that is a thin comp against a fatter ingredient bill.
Reddy was emphatic that the cut is about openings, not shutdowns. Closures have run in single digits in recent years, he said, adding: "this is not at all about closures." The U.S. still added 26 net stores in the quarter, with two closings, and Domino's says its long-term potential of more than 8,500 U.S. stores has not changed.
That distinction matters to anyone selling into or buying into a mature system. Development pipelines follow four-wall profit, and when operators hesitate the franchisor's growth math stalls even if demand looks fine. Other large systems are working the same lever from the other side: McDonald's last month committed $8.5 billion in rent relief and capital support to help its operators fund upgrades.
Jordan framed his agenda around two priorities, "getting closer to the customer and continuing to drive strong 4-wall profitability for our franchisees." He said he would share more of his perspective when Domino's reports fourth-quarter results early next year. Until then, the number franchisees will watch is not orders. It is how many items ride along with each one.
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