Domino's Pizza Earnings Miss: 3 ETFs That Could Still Deliver Tasty Returns In 2025

As Domino’s Pizza DPZ showed in its latest earnings report, even America’s favorite comfort food is not immune to the chill of a cooling economy. High inflation and jittery consumer sentiment, spooked by erratic trade policies, pulled down U.S. same-store sales by 0.5% on-year in the first quarter — a surprise miss against expectations.

Yet, all is not burnt crust and bad news. Domino’s surpassed earnings estimates with an EPS of $4.33, compared to $3.58 in the same quarter last year.

Smart tech investments by Domino’s, such as AI-based order preparation and their AnyWare platform, are likely to keep holding investor faith. On top of that, its new agreement with DoorDash DASH, which is launching nationwide in May, Domino’s has laid the groundwork for a possible comeback in the second half of the year.

This resiliency might make ETFs holding restaurant stocks an excellent opportunity for investors seeking to ride out economic volatility. Funds exposed to names such as Domino’s, McDonald’s MCD, and Chipotle CMG—all firms focusing on tech development and value-for-money strategies—may provide a defensive yet lively play.

The following are three ETFs that investors may consider adding to their menu:

AdvisorShares Restaurant ETF EATZ

EATZ is the sole pure-play restaurant ETF in the U.S. market, providing direct exposure to quick-service behemoths such as Domino’s, McDonald’s and Chipotle.

With a diversified basket in fast food, casual dining and coffee chains, EATZ is for those who think Americans will hold on to their comfort food, recession or not.

Domino’s is one of its top holdings, making it a natural choice for those wagering on pizza’s staying power.

However, EATZ has a reasonably small asset base, which may result in thinner liquidity. This makes it best suited for investors with a slightly higher tolerance for volatility.

Consumer Discretionary Select Sector SPDR Fund XLY

XLY provides more extensive exposure to consumer discretionary names, with heavyweight positions in Amazon AMZN and Tesla TSLA, but also brings in big restaurant players such as McDonald’s and Starbucks SBUX.

It’s less restaurant-intensive but gives more diversification to investors who desire dining stocks without going “all in” on the group.

During turbulent markets, the power of familiar names can be like economic comfort food, reassuring but with less risk.

Invesco Dynamic Leisure and Entertainment ETF PEJ

PEJ follows U.S. leisure and entertainment companies — including large restaurant chains.

It tilts toward companies poised for consumer discretionary spending, picking up both restaurants and entertainment spots.

US Foods USFD and others typically have a spot on its list, surfing trends such as value-based dining and convenience-optimized ordering like DoorDash.

PEJ’s high-momentum selection strategy aims to pick up companies with good fundamentals and momentum, making it a good choice in turbulent economic climates.

It is interesting to note that the recent action by Warren Buffett’s Berkshire Hathaway BRK to raise its stake in Domino’s in Q3 2024, just ahead of the latest tariff-led market volatility further supports the notion: even when the economy is shaken like a pizza, innovation, value and customer loyalty can make the dough keep coming.

For ETF investors, this could be the time to try restaurant-themed or consumer-discretionary funds that serve up a full plate of durability. After all, when pocketbooks get tight, Americans might skip the gourmet meal — but they’ll still call for a $10 pizza, maybe with extra cheese.

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