BUZZ-Street View: Still a ways to go for Domino's Australia franchise

Reuters11-06

** Domino's Pizza Enterprises , the franchise's biggest operator outside of the U.S., said on Tuesday its long-serving CEO Don Meij was stepping down

** Shares of the Australia-listed firm closed around 6% lower at A$31.60 on Tuesday - lowest level since Sept. 19

** DMP also issued a weak trading print: same-store sales down 1.2% in 17 weeks of FY25, vs growth of 2.7% pcp

NOT OUT OF THE OVEN YET

** Jefferies says Meij's resignation is "positive because it paves the way for the business to make the changes required to improve unit economics and restore growth"

** Jefferies cut PT to A$43.00 from A$44.00, retains "buy" rating

** Citi cuts PT to A$37.50 from A$38.50, retains "buy" rating; slashes NPAT forecast by 3% to 5% for FY25-27, citing slower sales

** Morningstar Equity analyst Johannes Faul says market is "overly discounting" DMP's long-term growth potential

** "Market is extrapolating current weakness and underestimating the massive growth of its (DMP's) global network," Faul says

** Seven of 14 analysts rate DMP "buy" or higher, four "hold" and three "sell" or lower; their median PT is A$38.50 – LSEG data

** DMP has lost 46.4% so far this year, significantly underperforming the ASX 200 Consumer Discretionary index

(Reporting by Sameer Manekar in Bengaluru)

((Sameer.Manekar@thomsonreuters.com; Twitter: ))

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