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Shares in Domino’s Pizza Enterprises slumped 24% on Wednesday as the company said price hikes dented demand.
The Australian-listed company
DMP,
which is the largest franchisee for Domino’s Pizza
DPZ,
said its first-half profit fell 22% to A$71.7 million. Same-store sales fell 0.6%, and in the first seven weeks of its fiscal second half, same-store sales fell 2.2%.
The company said customer counts have not met expectations since December, especially in Europe and Asia, lowering store profitability. The company said it benefited from price hikes in October and November, but then deliveries in December and January tailed off.
It has 3,736 stores, with 906 in Australia and New Zealand and the rest spread between Europe and Asia.
Domino’s Pizza Group
DOM,
which is based in the U.K. and has a third of the German operation that Domino’s Pizza Enterprises controls, fell 4% in London.
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