Jefferies flags exec changes, cost-out focus for pizza-maker Domino’s

Dominos Pizza Enterprises

03/08/2025 23:23

** Jefferies sees investor focus on Australia's Domino's Pizza's DMP.AX strategic direction following Group CEO departure and Jack Cowin’s appointment as interim executive chair

** Flags no FY25 earnings guidance yet; adds that lack of visibility suggests a result likely in line with consensus, though disclosure has been patchy historically

** Lowers PT to A$37.50 from A$42; maintains "buy" rating

** Brokerage expects on cost-out initiatives and whether savings will be reinvested or banked to margin; sees material upside over time

** Says review of unprofitable small markets like Cambodia and Luxembourg ongoing for DMP; investors to focus on exit potential and performance in key regions like Japan and France

** Adds franchisee profitability still challenged; Japan store closures expected to yield A$15.5 mln ($10.03 mln) in annual savings — outlook on store-level EBITDA improvement awaited

** Cuts FY25 EPS estimates by ~5% on slower same-store-sales growth and margin compression

** Stock down 38% YTD

($1 = 1.5461 Australian dollars)

 (Reporting by Rishav Chatterjee in Bengaluru; editing by Diane Craft)

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