Domino's Pizza Inc (NYSE:DPZ) faced a challenging second quarter, with its stock plummeting 10% following earnings that missed Wall Street's revenue estimates.
While US same-store sales grew by 4.8%, slightly below expectations, international markets saw a 2.1% rise in comparable sales, beating estimates.
Revenue climbed by 7.1% to $1.09 billion compared to the same period in 2023, just missing the consensus estimate of $1.1 billion.
Domino's loyalty program and its partnership with Uber Eats helped to expand consumer reach, however, growth in key international markets like Japan, France, and Australia slowed, prompting the company to lower its overseas unit growth guidance.
Domino's suspended its long-term guidance, citing uncertainties in international markets and a cautious approach to future opportunities.
Despite cost-saving measures boosting profits to $4.03 per share, higher-than-expected earnings couldn't offset investor concerns about slower global expansion and reduced sales expectations for the third quarter.