By Nicole Maestri
CHICAGO (Reuters) - The president of Domino's Pizza Inc's (DPZ.N: Quote, Profile, Research, Stock Buzz) U.S. business said on Wednesday that the U.S. economy is probably in a recession and consumers are feeling the pressure of the tough economic environment.
"Certainly, the consumer is not happy right now," said J. Patrick Doyle, president of Domino's USA, speaking at the Reuters Food Summit in Chicago.
But he said that the recessionary environment appears to be limited to the United States at the moment.
"So far, at least, this appears to be an entirely U.S. based phenomena," he said. Domino's Pizza operates in both the United States and abroad, in markets like Mexico, Australia, Japan and India.
Despite strength abroad, the pizza chain, like some other restaurant operators, has faced a difficult time with domestic sales, as it juggles higher commodity costs and price-sensitive consumers who are hesitant to spend on meals outside the home as they wrestle with rising food and fuel costs themselves.
In December, it posted a nearly 48 percent drop in its fourth-quarter net income, hurt by high cheese and wheat costs and a cash-strapped U.S. consumer.
Doyle said Domino's raised prices last year and tried to reduce certain promotions to offset rising commodity costs.
"We didn't get it all right," he said of the efforts. Continued...
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