Domino's Pizza Enterprises Ltd (ASX: DMP) shares are sliding today.
Shares in the S&P/ASX 200 Index (ASX: XJO) fast food pizza retailer closed yesterday trading for $24.02. In early afternoon trade on Thursday, shares are swapping hands for $23.11 apiece, down 3.8%.
For some context, the ASX 200 is down 0.7% at this same time.
If you've been following this stock, you'll know that Domino's shares have rebounded strongly since notching one-year closing lows of $13.31 on 7 October.
Despite today's slide, shares remain up an impressive 73.6% from those lows.
Yet shares still remain down 23.9% since this time last year, losses that will have only been modestly eased by the 77 cents per share in unfranked dividends Domino's paid out over the 12 months. The ASX 200 pizza retailer currently trades on a trailing dividend yield of 3.3%.
With shares still down sharply over the past year, is now still a good time to buy the stock?
Should you buy Domino's shares today?
For some greater insight into that question, we defer to Medallion Financial Group's Stuart Bromley (courtesy of The Bull).
"Domino's may be a turnaround play if current cost cutting, franchise improvements and international expansion go to plan," Bromley said. "But we see execution risk in Asia and Europe."
According to Bromley:
The company posted a statutory net loss of $3.7 million in fiscal year 2025, which was impacted by one-off items. The shares have recovered from their lows but are well below their highs of previous years.
Indeed, Domino's shares got a huge boost following the outbreak of the global pandemic in 2020 and the travel and dining out restrictions that lasted through 2021. That saw the ASX 200 stock hit $161.98 a share on 10 September 2021. Meaning shares are still down more than 85% from those highs.
Explaining his sell recommendation on the ASX 200 fast food stock, Bromley concluded:
The company operates in a fiercely competitive sector, where margins can be pressured. Until DMP shows a sustained recovery, we prefer to sit on the sidelines. Other stocks appeal more at this stage of the cycle.
What's the latest from the ASX 200 pizza company?
Domino's shares closed up 3.1% on 12 January after the company announced the appointment of a new CEO for its Australia and New Zealand operations.
Merrill Pereyra took the reins as CEO of Domino's ANZ business last week, on 23 January. He has more than 30 years of experience in the fast food restaurant sector, including leadership roles at McDonald's, Pizza Hut, and Domino's Indonesia.
Domino's hunt for a permanent group CEO is ongoing.
