Domino’s Pizza (NYSE:DPZ) saw its shares fall more than 13% today after forecasting slower Q3 comparable sales and cutting its target for new international store openings. The company now expects to fall short of its goal by about 275 stores, largely due to the closure of low-volume outlets in Japan and France by its Australia-based master franchisee.
Domino’s had aimed to open over 925 international outlets this year but now projects a lower number. The brand’s largest franchisee, Domino’s Pizza Enterprises, operates more than 3,800 stores in 12 international markets.
Concerns have emerged that these headwinds might affect more markets. Domino’s also suspended its target of adding 1,100 global net new stores between 2024 and 2028. Currently, it operates over 14,000 international stores.
In the U.S., Domino’s expects comparable sales to grow by 3% or more in the third and fourth quarters, following a 4.8% increase in the second quarter. CEO Russell Weiner emphasized the continued demand for value, supported by the company’s loyalty program and promotional offers like the carry-out “boost” weeks. However, fewer boost weeks are planned for the coming quarters compared to the reported period.
Despite missing expectations for same-store sales, Domino’s reported a profit of $4.03 per share, exceeding estimates of $3.68, due to lower supply-chain costs.