Domino’s Pizza Enterprises (DMP) – New focus

Domino's Pizza Enterprises operates retail food outlets. The company holds franchise rights for the Domino's brand in Australia, New Zealand, Belgium, France, the Netherlands, Japan, Cambodia, Germany, Luxembourg, Taiwan, Denmark, Malaysia, and Singapore. It operates various stores. Domino's Pizza Enterprises Limited was founded in 1983 and is based in Brisbane, Australia.

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Ord Minnett has updated its model for Domino’s Pizza Enterprises (DMP) to incorporate the latest store numbers and foreign exchange movements. As a result, our EPS estimates fall by 2% for FY25 and FY26, and by 3% for FY27, as the impact of fewer stores more than offsets the currency tailwind from a stronger euro and Japanese yen. The number of stores appears to have fallen by 1.3% over the first half of FY25 based on Domino’s publicly available data, as opposed to forecasts from previous CEO Don Meij for growth in store numbers of flat to slightly positive over the full financial year.

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New CEO Mark van Dyk is likely to concentrate on boosting same-store sales growth and improving the financial position of stores and franchisees rather than growing the store network. Overall, we maintain our Hold recommendation on Domino’s, while our price target falls to $30.00 from $31.00 as a result of the downgrades to EPS estimates

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