Yes, well said. When 35% of your market share is struggling, it is difficult to receive 27+ PE for valuation. ASAP if at least the negative figures in sales in Japan can be arrested, with the growth in ANZ, Germany,Benelux countries EPS will show 8% or so growth expectations like in McDonald’s, US Dominos etc. That will push up the PE applicable to Dmp to 27+.
The problems in Japan only Don & the team will know what needs to be done. I just read the expectations of Japanese pizza growth for the future is 3+. There is no structural problem.
Is it quality, service, marketing&advertising, distribution, price, product offer relevance to the consumer, competitions, quality of staff, addition of new product or combination of all these.? Don needs to answer and take action.
As Domino is number 1 in many regions of Japan, with time all these shortcomings can be addressed as DMP has done for decades.Don and the team have the numbers behind them to do it again.
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