Domino’s Pizza Enterprises shares (ASX:DMP) are under renewed pressure as analysts at Citi have downgraded the stock to “Sell” from “Neutral,” slashing the price target to A$14.20 from a previous A$23.82.
This dramatic revision reflects growing concerns about the company’s leadership instability and the efficacy of its turnaround strategies. The stock, which ended the last week at A$17.74, has already fallen 11.8% since the start of July, and almost 40% since the start of this year.
The downgrade comes on the heels of Domino’s announcement that Group CEO Mark van Dyck will step down at the end of the year, after less than 12 months in the role.
Citi analysts expressed surprise at this sudden departure, suggesting it could indicate that the company’s efforts to revitalise its performance are not yielding the anticipated results. This leadership shuffle, coupled with other recent management changes, has fueled anxieties about the company’s direction and ability to execute its strategic plans. Billionaire Jack Cowin, the company’s largest shareholder, has stepped in as interim executive chairman.
Domino’s shares have experienced considerable volatility in recent weeks, with a sharp drop following the CEO resignation announcement. While the stock saw a modest rebound of 2.37% on Friday, the overall trend remains weak, with an 7% decline on the week.
Top Australian Brokers
- Pepperstone - Trading education - Read our review
- IC Markets - Experienced and highly regulated - Read our review
- eToro - Social and copy trading platform - Read our review
Domino’s has been grappling with several challenges, including declining like-for-like orders and concerns about franchisee profitability. In February 2025, the company reported a 4.3% increase in group same-store sales for the first five weeks of the second half of fiscal year 2025. However, this positive news was overshadowed by the announcement of a business review focusing on Japan and France, which included plans to close 205 underperforming stores, primarily in Japan. While these closures are expected to yield annual savings of $15.5 million, they also come with one-off costs of approximately $97 million in FY25.
The leadership transition is the second in less than a year. In November 2024, Don Meij stepped down as CEO after over two decades at the helm, succeeded by Mark van Dyck. Following that announcement, shares experienced volatility, dropping around 6%. The company reported a 1.2% decline in same-store sales over the first 17 weeks of fiscal 2025, with declines in Germany, Japan, and France contributing to the drop. The revolving door in the CEO’s office does not inspire confidence.
Don’t Buy Just Yet
You will want to see this before you make any decisions.
Before you decide which shares to add to your portfolio you might want to take a look at this special report we recently published.
Our experts picked out The 5 best ASX shares to buy in 2025.
We’re giving away this valuable research for FREE.
Click below to secure your copy
