The era of the Friday night pizza party might be cooling off, and your wallet is the main character in this story. Domino’s just posted their latest quarterly results, and while they technically beat Wall Street’s revenue and profit expectations, investors aren't vibing with the future outlook. Shares tanked over 4% on Tuesday after the company warned that growth is hitting the brakes.

The Pizza Problem

Same-store sales crawled at a measly 0.3%, and global retail sales growth plummeted to 3.2%—a serious glow-down from the 6.3% growth seen last year. Real talk: Americans are pinching pennies, and pizza is officially losing its grip on the food scene. It’s fallen to the seventh most popular food in the U.S., getting outpaced by Mexican cuisine, which is now taking that sixth-place spot.

Why the Vibes Are Off

It’s a perfect storm for the industry. Technomic analyst David Henkes pointed to a shifting consumer landscape, noting that roughly 9% of Americans are now on GLP-1 drugs, which is lowkey changing how people eat. According to Henkes, pizza is projected to be the slowest-growing cuisine type this year compared to burgers or Asian food.

Domino’s CEO Joe Jordan is trying to pivot, launching 'The Domino'—an individual-sized pizza—to grab budget-conscious eaters. But that move might be an L for the bottom line; Bloomberg Intelligence analyst Michael Halen noted that the cheaper price point is likely dragging down the average check size.

The Industry Shakeup

It’s not just Domino’s feeling the heat. Small chains like Pieology, Anthony Coal Fired Pizza & Wings, and Bertucci’s already filed for bankruptcy last year. The big players are also in flux:

  • Pizza Hut: Yum! agreed to a $2.7 billion sale to a private equity firm.
  • Papa John’s: They’re shuttering hundreds of stores and potentially looking to go private.
  • Papa Murphy’s: MTY Food Group is exploring a sale and closing up to 50 locations.

Why it matters

When major chains are closing doors and growth is stalling, it signals a major shift in discretionary spending. If you’re looking for a sign to stop overpaying for delivery and start meal prepping, this is it—the pizza industry is struggling to justify those rising prices.