Domino’s Pizza Inc. Tuesday reported weaker-than-expected sales at its established U.S. restaurants, sending its shares down 3.8 percent.

The shortfall overshadowed a much better-than-expected second-quarter profit from the pizza delivery chain, which was helped by better-than-expected sales abroad.
Same-restaurant sales rose 8.8 percent in the United States, as a new pizza recipe continued to be popular. But the gain fell short of the 14.3 percent rise Domino’s reported in the first quarter.

Buckingham research Group analyst Mitchell Speiser said he had expected a a 10.1 percent rise in same-restaurant sales in the quarter.

“Expectations were a bit aggressive,” Speiser said. “But a nearly 9 percent (increase) in this environment is clearly noteworthy.”

Ann Arbor, Mich.-based Domino’s introduced its reformulated pizza in the U.S. in December to address concerns about its taste. The new pizza, which uses a different cheese blend and has a more garlicky crust, helped shares more than double since the start of December and led to the strong first-quarter results.

On the other hand, Speiser said international sales were better than expected in the second quarter.

Sales at established restaurants rose 6.2 percent in  Mexico, Britain and Australia, double the 3 percent rise Speiser expected.

“The international story continues to strengthen,” said Speiser, who has a “buy” rating on Domino’s shares though they were up 62 percent through Monday.

“This stock should really be viewed as a multinational company, and that typically gets a better valuation than 10 times earnings,” he added, referring to the company’s trading multiple before it reported quarterly results Tuesday.

Second-quarter net income rose to $22.6 million, or 37 cents per share, from $14.5 million, or 25 cents per share, a year earlier.

Excluding a 4 cent-per-share gain related to early debt repayment and tax benefits, Domino’s earned 33 cents per share — topping analysts’ expected profit of 28 cents per share, according to Thomson Reuters I/B/E/S.

Rvenue jumped 14.5 percent to $362.4 million, helped by the addition of new stores in international markets and higher sales at existing stores.

Rival Pizza Hut reported an 8 percent rise in same-restaurant sales for its quarter that ended June 12. Pizza Hut is part of fast-food company Yum Brands Inc.

Domino’s has not changed its pizza recipe outside the United States.

Domino’s shares were down about 3.8 percent, or 52 cents, at $13.07 in early trading on the New York Stock Exchange.