Feb 25 - Domino’s Pizza Enterprises disclosed a marked deterioration in trading at the start of its second half, attributing the setback to severe weather in parts of Europe and to a delayed Chinese New Year.
The company, which runs Domino’s outlets across 12 countries in Australia, New Zealand, Asia and Europe, reported a negative same-store-sales figure of 7.2% for the first eight weeks of the second half. That result contrasts with a Visible Alpha estimate projecting a 0.2% decline for the six-month period.
Investors reacted swiftly. The shares slid as much as 16.3% to A$18.13, marking the largest single-day percentage fall since late August 2025 as of 0205 GMT. The share price also touched its lowest level in nearly four months.
In its commentary alongside the trading update, the company pointed to the combination of poor weather across Germany and the Netherlands and the delayed start to the Chinese New Year as material factors behind the weaker-than-expected sales momentum.
The early-second-half contraction covers the first eight weeks of that reporting period; management compared that movement with Visible Alpha consensus for a modest decline covering the six-month span. The two windows are not identical in length, but both highlight a divergence between current trading and market expectations.
Market moves were pronounced following the disclosure, with the intraday drop representing the steepest single-session decline recorded since the late-August 2025 sell-off referenced in the trading update. The company now sits trading at a near four-month low, a notable development for shareholders tracking the stock.
Domino’s emphasised the role of the cited external disruptions in its trading note rather than flagging internal operational changes. The update did not include additional numerical guidance beyond the same-store-sales figures or forward-looking metrics.
Context for investors
Shareholders and market participants will be watching whether the factors cited by the company - severe weather in parts of Europe and calendar timing in China - prove transitory or persistent for revenues in the coming reporting periods. At present, the company has quantified the immediate impact as a negative 7.2% same-store-sales result over the opening eight weeks of the second half.
This disclosure, and the sharp market reaction that followed, underline sensitivity in the company’s shares to short-term trading variances tied to weather and calendar events in key markets.