Domino’s Pizza Enterprises (ASX:DMP) share price lower despite Japan update

This pizza chain operator has been very busy in Japan…
The post Domino’s Pizza Enterprises (ASX:DMP) share price lower despite Japan update appeared first on The Motley Fool Australia. –

The Domino’s Pizza Enterprises Ltd (ASX: DMP) share price is trading lower on Thursday despite the release of an update on its store expansion progress.

At the time of writing, the pizza chain operator’s shares are down 1.5% to $117.92.

Nevertheless, the Domino’s share price is still up a massive 34% since the start of the year.

What did Domino’s announce?

This morning Domino’s revealed that it has now opened its 800th store in the Japan market. Impressively, this is less than 12 months after opening its 700th store in the market.

According to the release, this means Domino’s Pizza Japan has opened a record of 126 stores in just one year. That works out to be an average of 2.4 stores per week over the period, despite COVID-19 challenges.

Domino’s Group CEO & Managing Director, Don Meij, said: “This marks an extraordinary achievement for Japan and is the result of a world-leading team effort from franchisees and team members alike.”

But the company has no plans to rest on its laurels. Management advised that it sees opportunities to almost double its footprint again in Japan over the next decade. This is thanks to changes in its Japanese operations that will allow it to make it dough in store, just like it does in the ANZ market.

Domino’s Pizza Japan President and CEO, Josh Kilimnik, explained: “Every member of the Domino’s Japan family should be proud of their efforts – this milestone is only possible because we have fundamentally changed how we have served our customers, from our menu offering and pricing through to our operations, which are consistently, safely delivering the fastest pizzas on the planet.”

“We are focused on reaching the 1500 store milestone by 2030-2032, with a new approach that allows us to make dough in stores (like in Australia/New Zealand) that opens up previously inaccessible cities and towns,” he added.

Are its shares good value?

One broker that still sees value in the Domino’s share price is Bell Potter.

It currently has a buy rating and $132.00 price target on its shares. This implies potential upside of 12% over the next 12 months.

The post Domino’s Pizza Enterprises (ASX:DMP) share price lower despite Japan update appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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