(Reuters) -Domino's Pizza on Monday missed market expectations for fourth-quarter same-store sales, as fast-food peers double down on their value meal offerings, hurting demand for the company's affordable pizzas and wraps.

Domino's shares fell 3% in premarket trading.

Consumers have been mindful of spending on dining out amid higher menu prices, and in response, fast-food chains have ramped up offers and discounts.

The pizza chain is up against stiff competition for affordable menu offering as other fast-food players such as burger giant McDonald's as well as Burger King stretch their value meal promotions to attract demand.

Domino's reported a quarterly same-store sales rise of 0.4% in the U.S., compared with analysts' average estimate of a 1.63% increase, according to data compiled by LSEG.

Burger King parent Restaurant Brands International as well as KFC owner Yum Brands topped market expectations for quarterly sales earlier this month, helped by robust demand for their value offerings.

On the other hand, McDonald's reported a bigger-than-expected drop in comparable sales in the U.S., as the company dealt with an E Coli outbreak.

Still, Domino's international business saw some recovery after macroeconomic pressures had dented demand in some markets in Europe and Asia last year.

The company's international same-store sales growth of 2.7% topped expectations of a 1.46% rise.

Gross margin for the quarter ended December 29 was 39.2%, in line with the third quarter.

Excluding items, the company earned $4.89 per share, compared with estimates of $4.90.