It hasn't been a great year for a couple of Australia's leading food companies.
Not only are the shares of the two companies listed below underperforming the market and their industry peers, but they have shed at least a third of their value year-to-date.
Is now a good time to snap them up?
The Domino's Pizza Enterprises Ltd. (ASX: DMP) share price has fallen 34% year-to-date due in part to a large decline yesterday following the release of its full-year results. Although Domino's delivered full-year net profit growth of 28.8% to $118.5 million, it fell short of the market's expectations.
But with its shares now changing hands at 32x earnings, I believe they are great value for money. Especially with the company aiming to double its store footprint over the eight years. I believe this will provide the company with a long runway for growth.
The Retail Food Group Limited (ASX: RFG) share price has fallen 30% since the turn of the year. Unfortunately there are a number of reasons why its shares have come under pressure this year. One key concern is over the impact that falling retail foot traffic will have on its business as many of its franchised stores are based in shopping centres.
Another catalyst was the company's surprise profit downgrade in June. Full-year underlying net profit after tax growth is expected to be 15% this year, compared to previous guidance of 20%. But at just over 10x forecast full-year earnings Retail Food Group does look cheap and could be worth a bite.