Domino’s says it’s immune from tariffs — but it’s not immune from a sputtering economy

Tariffs may not be making it more expensive for Domino’s to make you a pizza, but they do seem to be making it less appetizing for you to get one delivered.

The pizza giant reported earnings per share of $4.33 in the first quarter, well above estimates, on sales of $1.1 billion that were a touch shy of expectations. One topping investors didn’t want to see: store sales stateside fell 0.5%, while a small increase had been anticipated. Shares are about 2% lower in early trading with CEO Russell Weiner flagging the “challenging macroeconomic environment” when commenting on the company’s results.

Executives reiterated their full-year guidance on the conference call following the release of earnings, but said that “macro pressures” could put their view in jeopardy.

Management also tried to champion the company’s resilience when it comes to the topic on everyone’s mind this earnings season: tariffs. CFO Sandeep Reddy said Domino’s doesn’t see tariffs as having a “material impact” on operating profits, adding that its US business sources mostly from within the country.

But there’s a catch: “Our delivery business continues to be impacted by macro pressures that are impacting the low-income consumer,” Reddy said.

Even if Domino’s itself is relatively well insulated on the supply side, the same does not hold true for demand. It’s a good example of how tariffs can have an adverse impact on businesses that don’t even face directly higher costs. If the cost of lots of other things goes up and household budgets remain unchanged, all else equal, that’s less money you’re spending on getting pizzas deliveries. Unless, of course, Domino’s pizzas are a high priority in your household budget, in which case, no judgement.

Executives added that the company eliminated certain roles in the first three months of the year.