Domino's Pizza shares fall 11% on weak earnings and slow sales
Domino’s Pizza shares sink 11% after profit miss and sales slowdown
Shares of Australia’s Domino’s Pizza Enterprises Ltd. tumbled more than 11% on Tuesday, after the company reported disappointing first-half profits and a slowdown in same-store sales growth.
The stock fell 10.7% to A$28.8 ($18.26) as of 00:25 GMT, marking its lowest level since January 16 and placing it among the biggest decliners on the ASX200 index. The decline followed the company’s report of just 1.5% same-store sales growth in the first seven weeks of the second half of the 2025 fiscal year, reports Reuters.
That was a sharp drop from the 4.3% growth seen in the first five weeks, when the Lunar New Year holiday had temporarily boosted demand. Analysts at Jefferies noted that the latest growth rate fell short of the Visible Alpha consensus estimate of 2.6%, suggesting a broader slowdown in underlying performance.
Weaker Profits and Regional Challenges
Domino’s reported an underlying profit after tax of A$58.8 million ($37.29 million) for the six months ending December 29, 2024, missing Visible Alpha’s consensus estimate of A$59.3 million. Revenue also fell across its key markets, with the Asia region seeing a 7.1% decline to A$402 million.
The company cited several external factors behind the weak performance in Asia, including geopolitical tensions that weighed on sales in Malaysia and supply chain issues in Taiwan. Japan, which accounts for over a quarter of the company’s stores, also faced headwinds during the period.
As Domino’s navigates ongoing external pressures and slowing sales momentum, investors will closely watch its performance in the coming months. The company’s ability to stabilize growth and address challenges in its Asian operations will likely be key to its recovery.
Earlier, Australia’s banking sector faced a sharp downturn this week, wiping out $26 billion in market value as concerns over profitability mounted.
