Its hard to imagine that DMP was a market darling a few years ago, trading well above $165 back in 2021. Its been a tale of woes for DMP with overseas expansion one of its big disappointments over recent years. The stock tumbled again last month following its 1H result which showed sales falling at the start of the year. Same-store sales slid 7.2% in the first 8-weeks of the second half hindered by weather conditions in Europe and an early start to Chinas Lunar New Year holiday. The fall cast doubt over the chain’s “refresh” of simpler menus, fewer discounts and cost reductions.
New CEO Andrew Gregory, ex McDonalds, starts soon with plenty of room for improvement. On a bright note, franchise profitability did improve to its highest level in three years (from a low base).
Short interest in Domino’s rocketed from around 6% to 17% in just 5 months from July 2025, the start of this FY. It’s tracked largely sideways over the last 4 months but remains at 16% today, the most shorted stock on the ASX.
- We see no reason to catch this falling knife yet, but the new CEO might provide a catalyst later this year.
MM is neutral towards DMP around $17.50
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