Oct 10 (Reuters) - Domino's Pizza posted a

smaller-than-expected rise in third-quarter U.S. same-store

sales on Thursday as consumers curbed spending on dining out.

Despite inflation easing in the U.S., menu prices that rose

over the last two years have kept consumers wary of shelling out

money in restaurants. They have instead responded to steep

discounts and special offers.

As a result, competition has heated up in the fast-food

industry with burger chains, including McDonald's and

Burger King, offering some meals at price points around

$5.

The "burger wars", as they have come to be known, could also

be pressuring demand for Domino's usually value-driven pizzas,

analysts have noted.

Same-store sales in the U.S. grew 3% in the third quarter

ended Sept. 8, compared with expectations of 3.6% rise,

according to estimates compiled by LSEG.

Domino's now expects annual global retail sales for 2024 to

grow about 6%, as against an earlier forecast of 7% growth. The

company expects 2025 global retail sales growth to be roughly

in-line with the current year.

The world's largest pizza chain also had only one boost week

in the third quarter, where it offers 50% off on online orders.

This compared with two in the second quarter.

For July through September, foot traffic at Domino's grew

8.3% on an average, compared with a year ago, slower than the

average 10.7% growth in April-June, according to data from

Placer.ai.

Fast food chains are also facing weak demand in some

international markets. Domino's reported international

same-store sales growth of 0.8% in the third quarter, compared

with expectations of a 2.9% rise.

Domino's now expects global net store growth of between 800

to 850 this year, compared with earlier target of about 825 to

925 new stores.

Third-quarter diluted earnings per share came in at $4.19,

compared with estimates of $3.65.