.July 18, 2024 04:52:00 PM

Domino’s Pizza (NYSE:DPZ) shares dropped over 13% today after predicting slower Q3 comparable sales and reducing its target for new international store openings. The company expects to miss its goal by around 275 stores, mainly due to closures in Japan and France by its Australia-based master franchisee.

Domino’s had planned to open more than 925 international outlets this year but now anticipates a lower number. Its largest franchisee, Domino’s Pizza Enterprises, operates over 3,800 stores in 12 international markets.

Concerns have arisen that these challenges may impact additional markets. Domino’s also halted its target of adding 1,100 global net new stores between 2024 and 2028. Currently, it runs over 14,000 international stores.

In the U.S., Domino’s predicts a 3% or higher growth in comparable sales in the third and fourth quarters, following a 4.8% rise in the second quarter. CEO Russell Weiner highlighted the sustained demand for value, backed by the company’s loyalty program and promotional offers like the carry-out “boost” weeks. However, fewer boost weeks are scheduled for the upcoming quarters compared to the previous period.

Despite falling short of same-store sales expectations, Domino’s reported earnings of $4.03 per share, surpassing estimates of $3.68, thanks to reduced supply-chain expenses.