Australia fast-food stocks in focus as Citi flags price hikes, demand risks

Domino's Pizza Enterprises

01/06/2026 05:21

** Australia-listed shares of quick service restaurants (QSR) in focus after Citi flags rising menu prices across major chains, highlighting cost pressures
** Citi says four of five chains tracked raised prices in April-May, with Domino's DMP.AX seeing the largest increases
** Says Domino's price hikes to support franchisee margins could test demand elasticity
** Citi flags risk that higher prices could weigh on demand, particularly for value-focused consumers
** Sees pressure on Collins Foods CKF.AX from weaker spending among core blue-collar customers amid high interest rates and fuel costs
** Sees limited upside for Guzman y Gomez GYG.AX, with growth largely priced in and risk from potential share overhang 
** Notes GYG has held prices steady, strengthening relative value positioning but limiting margin upside



 (Reporting by Roushni Nair in Bengaluru)
 ((Roushni.nair@thomsonreuters.com))