Domino's Pizza reported third-quarter results that beat Wall Street expectations. Comparable sales growth improved from the previous quarter, but remained weak as the pizza chain works to revive demand amid intense competition for budget-conscious diners.

The pizza chain has been navigating a difficult environment as inflation-weary consumers become increasingly selective about restaurant spending. Rival chains have responded with discounts and value meals, intensifying competition not just among pizza companies but across the broader quick-service restaurant industry

For the quarter ended Sept. 6, Domino's reported diluted earnings of $4.60 a share, compared with $4.08 a year earlier. Revenue rose 3.4% to nearly $1.19 billion from $1.15 billion a year ago. Wall Street analysts had expected earnings of $4.36 a share on revenue of $1.17 billion.

Revenue growth was driven by higher sales of food and supplies to franchisees, as well as additional royalty income from Domino's expanding restaurant network. But that growth doesn't necessarily translate into stronger business for individual franchisees.

Although global retail sales increased 3.2% as Domino's added a net 175 restaurants from a year ago, existing restaurants have struggled to generate growth. Comparable sales increased just 0.3% in the U.S. and 0.2% in international markets -- much below Wall Street's expectation for a 0.8% growth across global markets.

This followed a particularly weak second quarter, when domestic comparable sales increased just 0.1% -- the slowest pace in five quarters. A year ago, Domino's posted U.S. same-store growth of 5.2%, supported by the company's value promotions and Parmesan Stuffed Crust launch. That has created a challenging bar for the pizza chain to beat.

The company has been leaning on product innovation, promotions and digital improvements to drive growth. Earlier this year, Domino's introduced a redesigned website and app, offering customers discounts for trying its new ordering platforms.

Later that month, it launched the Domino, an individual-sized Detroit-style pizza designed to compete more directly for single-person fast-food occasions. The company has also continued aggressive value promotions, including a weeklong offer of 50% off menu-priced pizzas in early October.

Domino's recently underwent a leadership change that's part of a multiyear succession plan. Joe Jordan took over as chief executive on Oct. 1, succeeding Russell Weiner, who retired from the role after more than four years. Jordan previously served as chief operating officer and president of Domino's U.S., overseeing its digital platforms and third-party delivery partnerships.

The company aims to "earn more occasions, continue gaining market share and create meaningful long-term value for shareholders," said Jordan in a Tuesday statement. "Domino's has always been at its best when we are a step ahead. That mind-set has helped us set the pace for the industry before, and it's how we'll push ourselves to do it again," he said.

Domino's Pizza is set to host an earnings call on Tuesday at 8:30 a.m. Eastern time. Investors will be looking for Jordan's assessment of consumer demand, the performance of new products and digital investments, and whether the company can drive stronger order volumes without putting additional pressure on restaurant profitability.

The stock has fallen roughly 25% year to date through Monday's close.