Restaurants

Domino's shares slip 5 percent after report warns of weak first-quarter sales

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Shares of Domino's Pizza fell more than 5 percent on Friday, closing at $175.16 per share, after a report warned first-quarter sales would be weak for the pizza chain.

According to StreetAccount, a report by M Science said the company's domestic sales growth would be "well below the rough consensus estimate."

Domino's, one of the strongest restaurant chains, posted same-store sales growth well above its rivals in the last quarter. It had the highest domestic same-store sales growth of the top 25 U.S. restaurant chains, with same-store sales up 12.2 percent in the fourth quarter.

After the company's stellar earnings last quarter, Nomura-Instinet analyst Mark Kalinowski wrote in a research note that Domino's digital strength, single-brand focus, marketing, improvement of food quality and its loyalty rewards program have contributed to its success.

It is unclear what may have caused sales to weaken in the first quarter. StreetAccount said it had no other details. Representatives for M Science did not immediately respond to CNBC's request for comment.

Domino's declined to comment, citing its policy not to comment on rumors or speculation. The company said it plans to report its first-quarter results on April 27.

One weak spot for Domino's has been its international business, where same-store sales fell more than 1 percent below Wall Street estimates last quarter.

At the time, the company reiterated that its three- to five-year outlook for international same-store sales growth estimates remained at 3 to 6 percent.

However, the chain was confident enough to update its domestic three- to five-year outlook, bumping its domestic same-store sales estimate to a range 3 percent to 6 percent from a prior estimate of 2 percent to 5 percent.

According to Thomson Reuters, analysts, on average, expect Domino's to earn $1.16 a share on revenue of $615.5 million.