Domino's shares dip over tepid guidance
Make us a preferred source
Make us a preferred source on Google
More news: Shares in Domino's Pizza Enterprises were down 2.3% to $32.63 despite the fast food chain more than doubling full-year profit, as analysts focused on the company's weaker than expected guidance.
E&P retail analyst Phillip Kimber said the FY24 result was slightly below expectations and also expects roughly 10% declines to consensus FY25 estimates due to tepid sales growth outlined by the company.
Domino's expects net store growth to be flat to slightly positive in FY25.
Domino’s Pizza full-year profit jumps
The news: Domino’s Pizza Enterprises has more than doubled full-year profit on the back of cost savings and improved sales.
The numbers: Net profit for the year to 30 June was up 136.5% from a year ago to $96 million, while revenue rose 2.7% to $2.38 billion. Underlying profit rose to $120.4 million, in line with analyst estimates of $120.8 million.
The company will pay a final dividend of 50.4 cents a share, up from 42.6 cents a year ago.
The context: The improved performance comes after a wide-ranging strategic review to deliver cost savings and improved efficiencies.
Domino’s, which owns and operates pizza stores in Australia, Asia and Europe, has faced narrowing margins amid a challenging economic environment, and last month announced it would close up to 80 low volume stores in Japan, and another 20 to 30 stores in France.
As a result, it expects net store growth to be flat to slightly positive in FY25, before rising to 3% to 4% growth in FY26.
The fast food chain expects same-store sales growth of 3% to 6% in the current fiscal although same store sales growth fell 1.3% in the first seven weeks of FY25.
The source: ASX announcement
