Restaurant chain Domino’s Pizza has reported a 3.9 per cent decline in revenue to $1.03 billion in the third quarter of FY23, citing lower sales in US company-owned stores and its exit from Russia.

The company said that market basket pricing to stores and lower order volumes dragged supply chain revenues and the refranchising of 114 company-owned stores in Arizona and Utah in the fourth quarter of FY22 pulled down US company-owned store revenues.

Same-store sales fell 0.6 per cent in US stores but grew 3.3 per cent in international stores. Excluding foreign currency impact, total global retail sales rose 5.1 per cent.

Domino’s Pizza’s store count totaled 20,197 as of September 10, 2023, after the company opened 218 stores but closed 226 stores during the period, resulting in a decline of eight stores. That figure includes the closure of the 143 remaining stores trading in Russia. Excluding those, the store count rose by 135 – a net 27 in the US and 108 abroad.

Meanwhile, the company booked a net income of $147.7 million in the three-month period, up 46.9 per cent from a year ago, primarily attributed to a $28.2 million pre-tax unrealized gain associated with the remeasurement of the company’s investment in DPC Dash.

The results excluded the impact of the Russian market after the master franchisee that operates Domino’s Pizza stores in Russia announced its intent to file for bankruptcy.

For FY23, the company estimates that global net store growth will trend at or slightly below the low-end of its 5 per cent to 7 per cent two- to three-year outlook.

Global retail sales growth, excluding foreign currency impact, is forecasted to trend modestly below the mid-point of its 4 per cent to 8 per cent two -to three-year outlook.

The world’s cheapest Domino’s pizza is in inflation-hit India. It costs $0.88.