Unfortunately for its shareholders, the Domino's Pizza Enterprises Ltd. (ASX: DMP) share price has taken another tumble and is down 4% to $52.27 in morning trade.
This means the pizza operator's shares are down approximately 24% in the last 12 months and sit just a fraction above their 52-week low.
What happened?
As well as trading on an exorbitant earnings multiple, concerns over alleged staff underpayments and franchisee profitability have weighed heavily on Domino's share price this year.
As you might expect, it didn't take long for short sellers to take an interest in the company, putting further pressure on its shares.
Even today after such a sharp decline, Domino's is one of the most shorted shares on the Australian share market. At the last count approximately 12.2% of its shares were in the hands of short sellers.
Is it time to invest?
Whilst the high level of short interest is a bit of a concern, I think Domino's could be a great option for investors today.
Thanks to its innovative business and a shift towards eating out and home delivery, I believe Domino's is in a good position to continue growing earnings at an above-average rate for some time to come.
So with its shares changing hands at 35x annualised earnings after its recent declines, I think Domino's shares are reasonably good value.
Because of this, I would put it up there with Collins Foods Ltd (ASX: CKF) and a2 Milk Company Ltd (Australia) (ASX: A2M) as one of the better options in the consumer sector.
