Shares of Domino’s Pizza Enterprises (NYSE: DPZ) fell sharply by over 11% on Tuesday, reaching their lowest price since January 16. The drop occurred after the company failed to meet earnings expectations and reported a slowdown in same-store sales growth in early 2025.

As of 0025 GMT, Domino’s stock was trading at A$28.8, down 10.7%, making it one of the top decliners on the ASX200 index.

Earnings Miss and Slowing Growth

For the six months ended December 29, 2024, Domino’s reported:

• Underlying profit after tax: A$58.8 million ($37.29 million) – slightly below the consensus estimate of A$59.3 million.
• Same-store sales growth: 1.5% in the first seven weeks of 2025, down from 4.3% growth previously.
• Revenue decline in key markets: Asia reported a 7.1% drop to A$402 million.

Analysts noted that the slower growth and decreased sales figures indicate waning consumer demand.

Challenges in Key Markets

As the largest master franchise of Domino’s Pizza outside the U.S., the company operates in 12 countries across Asia, Europe, Australia, and New Zealand. Japan alone accommodates a significant number of its stores.

Challenges observed in Asian markets include:

• Geopolitical tensions impacting sales in Malaysia.
• Brand perception issues in Taiwan due to ingredient sourcing struggles.

Despite these difficulties, Domino’s maintained an interim dividend of 55.5 Australian cents per share, matching last year’s payout.

Financial Health and Profitability Insights

Investors can assess Domino’s financial health by analyzing APIs related to the company’s ratings and earnings.

Outlook for 2025

Domino’s confronts macro headwinds, such as intensifying competition and shifts in consumer spending, despite maintaining its dividend payout, which attests to management’s confidence in long-term stability. Investors will closely monitor upcoming earnings reports to evaluate future profitability and store growth trajectories.