It is possible but it will only increase EBITDA and EPS, similar to recent announcement of 205 store closures resulting $15m profits improvement. Closure of 80+172 stores in Japan should have rounded up most of the loss making stores. Total store left over of 750 should be compared to pre Covid count of 600 stores for population of 125m. Obviously the demand in Japan is still there as seen during holiday period where they were unable to meet it. Of course penetration is not same as in the western countries with only 2 or 3 visits per year. So even if there is closure few stores here and there, EBITDA and EPS are very safe and stabilised. My main point at these current parameters DMP is valued around 50% of DPZ and MacDonald valuations.This will not last when the investors start concentrating on adjusted bottom line. I understand DPZ and MacDonald growth expectations are much higher than DMP but not to value around 50% ratios of 2026 forecasted figures.
DMP Price at posting:
$27.29 Sentiment: Hold Disclosure: Not Held
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