Australia's Domino's operator falls as U.S. parent's update offers few fresh clues
BUZZ-Australia's Domino's operator falls as U.S. parent's update offers few fresh clues ** Shares of Domino's Pizza Enterprises DMP.AX tumble as much as 4.7% to A$20.87, marking their steepest intraday percentage decline since September 7
** Jefferies says comments from Domino's Pizza DPZ.O, which licenses the brand to DMP, gave little new information beyond DMP's seven-week trading update
** Brokerage says DMP's seven-week trading update, showing same-store sales down 5.8%, had already captured updates for most of the considered period
** However, Jefferies added that DPZ's CEO struck the most upbeat tone on DMP in some time, reaffirming management’s emphasis on profitable volumes while indicating some markets may eventually transition to alternative operators
** Jefferies sees upside in DMP and welcomes management’s progress in stabilising earnings, though a sustained recovery in same-store sales remains key once the pricing reset laps
** YTD, DPZ has shed nearly 29% of its value, vs DMP's gains of 1.5%
(Reporting by Kumar Tanishk in Bengaluru)
((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk http://www.x.com/thatstanishk;))
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