GOIH Capital Markets: Consumer Spending Decline

Food Costs: Domino's Pizza (DPZ), the nation's largest pizza chain, missed on both revenues and earnings Tuesday. Why? Let's go to the company's CEO: "Unprecedented cost pressures and a weak consumer environment negatively impacted our domestic results in the quarter, which made striking the right balance between increasing prices, while operating in a period of declining traffic, very difficult."



GOIH Commentary:

As we have repeatedly posted here the consumer is feeling the pinch and is not spending as much. If pizza sales are down what does that bode for autos and other consumer discretionaries?