Domino's Pizza shares, one of the hottest trades of 2017, plunge 8% in single day
- Shares of Domino's Pizza fell 8 percent in Tuesday trade after international sales fell short.
- Alternatively, same-store sales at company-owned outlets in the United States jumped 11.2 percent in the second quarter, beating the 7.70 percent rise analysts had expected.
Domino's shares fell 8 percent Tuesday for their worst day in more than a year following weaker-than-expected international same-store sales growth.
Foreign same-store growth climbed only 2.6 percent. Analysts polled by FactSet expected growth of 5.1 percent. BTIG analyst Peter Saleh said in a note Tuesday this represents the weakest international growth in more than a decade.
"While international same-store sales growth was slightly under our expectations, we remain very confident in our continued ability to generate best-in-class growth," said Domino's CEO J. Patrick Doyle in a release. "As a work-in-progress brand, we will always remain focused on areas we can improve."
The nosedive comes after a strong start to the year as Domino's stock price climbed 34 percent for the year through Monday's close and an otherwise strong earnings report.
The company's supply-chain revenue, through which it supplies franchisees ingredients and equipment and accounts for almost 67 percent of total revenue, rose 15 percent to $390.1 million, according to Reuters.
Alternatively, same-store sales at company-owned outlets in the United States jumped 11.2 percent in the second quarter, beating the 7.70 percent rise analysts had expected.
Net income rose to $65.7 million, or $1.32 per share, in the quarter ended June 18, from $49.3 million, or 98 cents per share, a year earlier.
It was the worst drop for the stock since a 9.9 percent drop in April 2016.