Domino's Pizza Enterprises Ltd (ASX: DMP) shares are slumping today.
Shares in the S&P/ASX 200 Index (ASX: XJO) fast food pizza retailer closed yesterday trading for $14.60. In afternoon trade on Thursday, shares are changing hands for $14.21 apiece, down 2.7%.
For some context, the ASX 200 is down 0.4% at this same time.
As you may be aware, Domino's shares have had a tough run over the past year.
How painful?
Well, they're now down a painful 52.5% from the $29.92 those shares were commanding 12 months ago. And those losses will have only been modestly softened by the 77 cents per share in unfranked dividends Domino's has paid to eligible stockholders over the year.
But after losing half of its share price value, is the ASX 200 pizza retailer now a bargain buy?
For some greater insight into that question, we defer to Red Leaf Securities' John Athanasiou (courtesy of The Bull).
Domino's shares: Buy, hold, or sell?
Domino's Pizza released its full-year FY 2025 results on 27 August.
And investors reacted by sending Domino's share down 22.0% on the day.
Why?
"Domino's reported its first annual net loss since listing, driven by weak international sales, cost pressures and the closure of underperforming stores in Japan and France," Athanasiou said.
"A statutory net loss of $3.7 million in fiscal year 2025 was impacted by one-off items," he added.
Athanasiou isn't ready to recommend buying the stock just yet. But he's also not keen on selling.
Explaining his hold recommendation on Domino's shares, he said:
A hold is appropriate as management rationalises the store network, improves operational efficiency and resets the growth strategy. The core business remains resilient, with strong brand recognition in Australia and New Zealand.
Looking ahead, Athanasiou concluded, "Guidance is conservative, and while near-term catalysts for a rebound are limited, long term investors should wait for evidence of a recovery before taking new positions."
What might investors expect in FY 2026?
Looking at what could impact Domino's share in the new financial year, the company said it intends to reinvest "the benefits of ongoing savings initiatives into additional working media and lower costs to drive improved unit economics and franchise returns".
The pizza company said it will only pursue new store openings if it expects those new stores to be sustainably profitable and deliver a meaningful return on investment to its franchise partners.
"We have work to do. But we know what matters. A better experience for our customers, a stronger return for our franchisees and value creation for our shareholders," Domino's Pizza executive chair Jack Cowin said on the day of the results release.
