According to Jarden, the improvement in Domino’s Japan operations will require time. The brokerage highlights persistent challenges in the Japanese market, citing softer industry numbers observed through April. Factors contributing to this include weaker customer growth and increased promotional activity. Additionally, Jarden notes that Domino’s Pizza Enterprises is experiencing a loss of market share domestically.
Despite these obstacles, Jarden remains cautiously optimistic, stating that the worst may be behind the company as it has implemented measures to enhance its cost base. The brokerage also acknowledges positive developments on the macro level for Domino’s, as its strategic initiatives gain traction, and it maintains effective control over costs and cash flow.
The stock’s performance reflects the challenges faced by Domino’s Pizza Enterprises this year, with a decline of 37% recorded as of the previous close. As the company navigates these hurdles, investors will likely monitor its efforts to address operational issues and capitalize on potential growth opportunities.