Domino's Pizza Enterprises Ltd (ASX: DMP) shares crashed on Wednesday. At the close of the ASX, the fast-food pizza chain's shares had fallen 11.08% to $19.27 a piece.
It was the worst-performing S&P/ASX 200 Index (ASX: XJO) stock for the day.
The decline comes off the back of the company's FY26 half-year result, which it posted ahead of the market open on Wednesday morning.
The drop means the shares are now down 11.68% for the year-to-date and 33.3% lower over the past 12 months.
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What spooked investors?
The fast food operator posted a 1.6% decline in network sales for the six months to the 31st of December 2025.
But the good news is that the business swung back to profit and delivered modest growth in underlying earnings. This signals that Domino's turnaround strategy is gaining traction.
Domino's underlying earnings before interest and tax (EBIT) reached $101.5 million, up 1.0% on the prior corresponding period (pcp).
The company said it took deliberate steps to improve its franchise partner profitability during the six-month period. It did this by reducing heavy discounting and resetting store pricing. This impacted short-term volumes but will help strengthen operational foundations.
The company's new leadership team, including the announced appointment of a new group CEO, is now focused on disciplined execution and supporting franchise partners through cost-saving and simplification initiatives.
But the reset-style results didn't sit well with the market. Investors were spooked and it saw many offload their stock. Which in turn, sent the share price crashing.
Is this a buying opportunity for Domino's shares, or time to sell up?
Some brokers have recently pulled or adjusted their position on the stock. But that now the results have been published, we could see some brokers confirm or adjust their outlook on Domino's shares in coming days.
At the time of writing, after the ASX close on Wednesday, analysts are still on the fence about the outlook for Domino's shares this year.
TradingView data shows that out of 14 analysts, five have a buy or strong buy rating, four have a hold rating, and five have a sell or strong sell rating.
Just a week ago there were 17 analyst ratings, and six of them were a hold.
The latest data shows that the average target price is now a little higher at $21.46. This implies 11.38% potential upside at the time of writing.
But some analysts think the shares could rise 55.68% to $30 a piece. Meanwhile, others think they should sink another 32.54% to $13.00.
