Australia's Domino's Pizza hits over 9-yr low after dismal store outlook, closures

Dominos Pizza Enterprises

18/07/2024 01:38

** Shares of Domino's Pizza  DMP.AX  slump as much as 9.4%
to A$32.70, their lowest since Feb. 2015
    ** Co emerges as top loser on the benchmark  .AXJO  
    ** The pizza maker said after market-hours on Wednesday that
its sees flat store growth in the current fiscal year and has
decided to close up to 80 low-volume stores in Japan and 10-20
stores in France
    ** Co, however, expects a return to positive same store
sales in Japan in FY25 that started this month, and sees overall
group store growth of 3%-4% in fiscal 2026
    ** Multiple brokerages slash price target for Domino's after
dismal outlook and store closure
    ** "We see Japan store closures as a step in the right
direction in addressing ongoing market underperformance,"
analysts from Morgan Stanley say 
    ** Stock has fallen 38.8% this year as of last close

 (Reporting by Archishma Iyer)
 ((Archishma.Iyer@thomsonreuters.com;))