Australia's Domino's Pizza at near 11-year low; MS downgrades PT, rating

Dominos Pizza Enterprises

10/06/2025 01:31

** Shares of Australia's Domino's Pizza Enterprises DMP.AX fall 4.7% to A$20.3, their lowest levels since August 2014

** Analysts at Morgan Stanley reduce PT on the pizza maker to A$24 from A$37.4, and downgrade rating to "equal-weight" from "over-weight"

** Brokerage flags structural headwinds for traditional quick-service restaurant chains have intensified, reflecting consumer's shift towards more healthy choice and fast-casual offerings

** Adds issues around price rises which have eroded the "value proposition"

** Expects co to reset same-store-sales growth outlook at the group Investor Day for second half of the year

** Says co's network expansion to remain under pressure until store profitability improves

** While MS views new CEO's changes as positives, says benefits are hard to quantify and are likely to be more medium-to-long term in nature

** Stock down 29.7%, YTD

 (Reporting by Rishav Chatterjee in Bengaluru)

 ((Rishav.Chatterjee@thomsonreuters.com;))