Domino’s Pizza sees Q3 same-store sales growth ‘slightly below’ Q2 rate

Sandeep Reddy, Domino’s Pizza Chief Financial Officer, said on the company’s earnings call: “Specific to Q3, we expect comps to be slightly below what we saw in Q2 on a one-year basis. We’re expecting one less boost week, partially offset by a continued ramp in the world. Second seems to be able to increase the marketing and awareness grow. And we are expecting to exit the year with an overall sales mix of 3% or more third, international comps to accelerate to 3% or more long-term guidance in the back half of the year. As also noted, we now expect to fall below 1,100 or more net new store number for 2024. This is due to challenges in our international business… We will provide an update on the impact to our long-term outlook for 2025 and beyond. We continue to expect an 8% or more year-over-year increase in operating income, excluding the impact of foreign currency. To highlight some of the components for the full year, you can expect operating income margins to be relatively flat compared to 2023 and to be down slightly in Q3. As a reminder, we are not expecting to see cost leverage in 2024, primarily due to investments we are making in consumer technology, store technology and supply chain capacity to support future sales group.”