Domino’s Pizza Enterprises has posted a net profit after tax of A$136.2 million, compared to A$102.9 million in the prior year. It also announced a final dividend of 49.7 cents per share, lifting its full-year dividend to $1.078 per share.
Domino's has been focusing on its online and overseas businesses but has struggled to control in-store costs, especially in Norway where it has 34 own-brand stores and is converting the Dolly Dimple stores it acquired in 2017. "Whilst our international businesses continue to make good progress with customers and sales, it has taken us some time to refine the operating model and cost base at store level, particularly in Norway," said Chief Executive Officer David Wild. (Reuters)
A strong performance in the UK, the company's home base where it controls about 46 percent of the pizza delivery market, helped offset the international results.
Domino’s has made some disastrous marketing decisions in the past 12 months including limiting there menu to only large pizza’s during the end of year trading period in Japan which saw sales drop by 8.8%.
This led to several downgrades earlier this year with price targets ranging from $36.70 - $55.00.
The Weekly chart of DMP shows the move out of the bearish flag developed over July to August.
The Primary trend of DMP is now down with the break of $46.60 support. Next key support level is $38.00.
The Daily chart for DMP shows a clear top in place set during June 2018 to July 2018 with the lower target met shortly afterwards.
DMP has gapped down on open this morning, the Relative strength Indicator is now below the key “50” level. Buying on this retracement carries significant risk of further declines in price.
