Domino’s Pizza Enterprises (DPE) has been served with a shareholder class action which alleges it gave misleading information about the pizza brand’s expected performance in the Japanese market.
Echo Law filed the proceeding on behalf of the lead applicant, LabPoint Pty Ltd Superannuation Fund.
The class action is open to anyone who entered into a contract to acquire an interest in ordinary shares in Domino’s or long exposure to Domino’s shares by entering into equity swap confirmations in respect of Domino’s shares, during the period between 18 August 2021 and 3 November 2021 (inclusive).
In its acknowledgement of the class action to the ASX, Domino’s said it “denies any liability and will defend the proceeding”.
Domino’s Pizza Enterprises in Japan
DPE entered the market in 2013 and bought out its Japanese partner Bain Capital in 2017. In February 2021 the Japanese market had delivered the strongest growth with sales rising 42.6 per cent. However in its 3 November ASX announcement, DPE pointed to both “excellent sales” in Q1 and following the lifting of a state of emergency, negative network sales on a one-year basis.
“Management is currently unable to forecast FY22 sales and if earnings will surpass FY21,” it said.
Just a year ago the pizza group was celebrating 1000 stores open across Japan but in July 2024 DPE announced it would close up to 80 low-volume stores.
