Domino’s share price plunge

News that Domino’s Pizza had failed to meet its own profit targets provoked a share price plunge of more than 20 per cent yesterday.

Within minutes almost $1bn was wiped from the pizza giant’s shares but by market close the share price had picked up from the $40.28 low to $41.50 by the market close – still lower than the starting point of $51.11 a share, according to Fairfax media.

Don Meij, Domino’s CEO, told investors “I’m embarrassed we got this one wrong, but I’m not embarrassed we grew 28.8 per cent”, Fairfax reports.

Domino’s also announced a $300m share buy-back as part of its ongoing capital management strategy and a statement to the ASX today clarifies that the business will not acquire shares on-market at the same time as the CEO may plan to sell any shares.

The company confirmed it has established a buy-back panel to avoid any potential conflict of interest.