DMP ASX: Domino’s Pizza faces market scepticism over France, Japan turnaround

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Shares in the pizza maker have sunk to their lowest since August 2019, with analysts underwhelmed about its strategy to fix the struggling overseas businesses.

Already a subscriber?Domino’s Pizza Enterprises’ plan to turn around its troubled businesses in France and Japan has a “lack of transparency and conviction”, Goldman Sachs says.

But Goldman Sachs’ Lisa Deng said she did “not believe the company dissected the core issues of the problem regions such as France and Japan sufficiently and hence there remains a lack of transparency and conviction on how they will fix these issues”.

Citi’s Sam Teeger said it was possible there could even be several Domino’s store closures in Japan. “In Japan, Domino’s appears to have rolled out too fast and too broad geographically, when in hindsight it may have benefited from clustering stores in prefectures to achieve better scale, before moving on to the next prefecture,” he said.

Domino’s has investor meetings planned next month in Europe, where it is expanded to provide more details about its operations in France.

 

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