Is Domino's a steal after -25% plunge?


Domino’s Pizza (ASX: DMP) just plunged 25% on Wednesday after CEO Mark van Dyck abruptly resigned only eight months into the role.

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It’s the latest setback for a company already under pressure, having written down $103.5 million in store values earlier this year, basically admitting some locations, particularly in Japan and France, weren’t performing.

So, with the price now at rock-bottom levels, the real question is: Is this the moment to snap up Domino’s as a bargain, or is it time to let this one go for good?

The challenges are real: Store closures, negative free cash flow, and litigation risks in Europe have all shaken confidence.

Even JPMorgan dumped its stake in June, signalling institutional caution.

Leadership uncertainty adds to the concerns. Founder Jack Cowin is stepping in as interim Executive Chair while they search globally for a new CEO, providing short-term stability but leaving longer-term strategy in question.

Yet, it’s not all doom and gloom. Domino’s does have a turnaround plan: Closing or refranchising weak stores, boosting digital efficiency via its OneDigital platform, and targeting over $18 million in annual cost savings. Plus, it still has nearly $285 million in undrawn credit to shore up operations.

From a value perspective, a lot of bad news is already priced in and that’s often where opportunities emerge.

But this isn’t a buy-at-any-price stock. Dominos has been falling steadily since its $167 peak in 2021; just because it’s under $20 now doesn’t make it a bargain.

Technically, there is some short-term support around current price levels, but a break below $15 could see the share tumble towards $5, while a strong move back above $20 would suggest confidence is returning.

As we always say on the Wealth Within show: Don’t try to catch a falling knife. Wait for price confirmation before acting. Because investing isn’t just about making money, it’s about protecting it.

What were the best and worst-performing sectors this week?

The best-performing sectors include Materials, up over 3%, followed by Healthcare and Real Estate, both up over 2%. The worst performing include Financials and IT, both down over 0.5%, followed by Communication, down under 0.5%.

The best performing stocks in the ASX 100 include Mineral Resources, up over 15%, followed by James Hardie, up over 11%, and Pilbara Minerals, up over 10%.

The worst-performing stocks include Lynas Rare Earths, down over 6% followed by Xero Limited and Insurance Australia Group, both down over 3%.

What’s next for the Australian stock market?

The All-Ordinaries Index booked a solid 1% gain this week, adding to its strong run and inching ever closer to a fresh all-time high. But while momentum looks promising, the market still hasn’t broken through, and that makes this moment crucial.

Why does it matter? Just look across the Pacific. The S&P 500 has already smashed through its old record and is now trading more than 1% above it, driven by a relentless surge in mega-cap tech stocks like NVIDIA. Once again, Wall Street sets the pace, but this time, we haven’t quite caught the wave.

The big reason for the gap is sector weightings. Australia’s market is stacked with financials and materials, not sizzling tech giants. Banks like CBA have done most of the heavy lifting so far, while the miners remain sluggish and unconvinced.

A potential rate cut this month could add a bit more fuel, but how much of that is already factored into the prices?

There’s another factor in play, too: The looming July 9 tariff deadline. With little progress made so far, uncertainty is rising, and if there’s one thing markets hate, it’s exactly that.

For now, the trend is still pointing up. A decisive break to a new high would clear the path to 9,000 points, turning 8,800 points into the new support base. But if the rally stalls here, the next big support sits back at 8,600 and 8,400 levels that could be tested fast if sentiment turns.

This is a make-or-break moment for the market. Close to lift-off, but just as close to a reversal if confidence wavers.

Stay alert, watch your charts and trade with discipline; the next move could be big.

Join the discussion: See what’s trending right now on Australia’s largest stock forum and be part of the conversations that move the markets.

Disclaimer: While Wealth Within holds an Australian Financial Services License (AFSL:226347), the information featured in this program is general in nature and therefore should not be relied upon. Before making any investment decisions, you should consult a licensed professional who can advise whether your investment decisions are appropriate for you.

Dale Gillham is Chief Analyst at Wealth Within and international bestselling author of How to Beat the Managed Funds by 20%. He is also the author of Accelerate Your Wealth—It’s Your Money, Your Choice, which is available in bookstores and online at www.wealthwithin.com.au.

The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.

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