July 18 (Reuters) - Domino's Pizza fell short of

market expectations for second-quarter same-store sales on

Thursday as U.S. consumers, particularly in the lower-income

group, spent less on eating out or ordering in.

Sequentially slower growth in food services in June

indicated that consumers were still looking to stretch their

budgets as they recover from a period of high inflation, even as

a better-than-expected overall U.S. retail sales report signaled

economic resilience.

Domino's U.S. same-store sales growth of 4.8% in the quarter

fell just short of expectations of growth of 4.91%, according to

LSEG data.

The company has been catering to consumers looking for

cheaper options through its refreshed loyalty program in the

U.S. as well as several offers to draw in customers.

Analysts, however, had expected tougher competition for

Domino's this quarter as fast-food peers also ramped up value

offerings and promotions.

Still, a streamlined supply chain and resilience in its

same-store sales in the U.S. helped the pizza maker earn a

profit of $4.03 per share, compared with market expectations of

$3.68.

"We had positive order counts in our delivery and carryout

businesses, and across all income cohorts. Our strategy is

resonating with customers," said Russell Weiner, Domino's chief

executive officer.

Robust advertising revenue and franchise royalties and fees

also helped second-quarter gross margin rise to 39.8% from 39.5%

a year ago.

Domino's maintained its long-term outlook of more than 7%

annual global retail sales growth.

The company reported total revenue of $1.10 billion in the

second quarter, roughly in line with estimates.