Domino's Pizza Enterprises shares fell as much as 4.7% after comments from Domino's Pizza offered few new clues beyond the Australian operator's seven-week update, which showed same-store sales down 5.8%.
Shares of Domino's Pizza Enterprises fell as much as 4.7% to A$20.87, their steepest intraday percentage decline since September 7. Jefferies said comments from Domino's Pizza, which licenses its brand to the Australian operator, offered little new information beyond Domino's Pizza Enterprises' seven-week trading update.
The seven-week update showed same-store sales down 5.8% and had already captured updates for most of the period considered, Jefferies said. The brokerage said Domino's Pizza's CEO struck the most upbeat tone on Domino's Pizza Enterprises in some time, reaffirming the focus on profitable volumes while indicating some markets may eventually transition to alternative operators.
Jefferies sees upside in Domino's Pizza Enterprises and welcomed management's progress in stabilising earnings, but said a sustained recovery in same-store sales remains key once the pricing reset laps. Year to date, Domino's Pizza had shed nearly 29% of its value, while Domino's Pizza Enterprises had gained 1.5%.
