Australia's Domino's Pizza falls; Citi downgrades stock, cuts PT

Dominos Pizza Enterprises

11/12/2024 24:50

(Adds shares)
    ** Domino's Pizza Enterprises  DMP.AX  falls as much as 2.2%
to A$30.56, lowest since Nov. 26
    ** Citi downgrades to "neutral" from "buy"; trims PT by 11%
to A$33.25
    ** Says continued weakness in France is "disappointing",
particularly given co's recent initiatives including launch of
stores on Deliveroo and new lunch menu items
    ** Adds while data shows some green shoots in Japan, it's
too early to turn positive on the market until co can prove
sustained same store sales growth
    ** Notes only 16 gross store openings as of Dec. 10 in FY25
vs 72 closures
    ** Says DMP will need to increase pace of rollouts to meet
FY25 forecast of flat-to-slightly positive net new store growth
    ** As of last close, stock down ~47% YTD

 (Reporting by Himanshi Akhand in Bengaluru)
 ((Himanshi.Akhand@thomsonreuters.com;))