Australia's Domino's Pizza slides; Morningstar trims fair value estimate

Domino's Pizza Enterprises

31/07/2026 06:19

** Shares of Domino's Pizza Enterprises DMP.AX decline as much as 6.5% to A$18.3 per share, on track for worst session since July 23
** Morningstar trims its fair value estimate for DMP to A$34, expecting no further store growth in the underperforming Taiwanese and French markets following write-downs
** On Wednesday, co announced it will book A$259 million ($181.95 million) in impairment charges in fiscal 2026, mainly tied to accounting writedowns of French and Taiwanese ops
** Firm tapers global same-store sales growth outlook for the next decade to an average of 1%, down from 2% previously, and assumes delivery competition will stay intense across all markets
** Brokerage says shares "significantly undervalued" as the market is too pessimistic on long-term growth opportunity, with improving franchisee profitability enough to reignite its global store rollout expected to be a multiyear exercise
** Down 12.5% YTD 

($1 = 1.4235 Australian dollars)

 (Reporting by Anjali Singh in Bengaluru)
 ((anjali.singh2@thomsonreuters.com;))