I see your point on Pizza Hut move with more fire power to...

I see your point on Pizza Hut move with more fire power to Australia and potential impact.
The way I see it is different. Domino has less than 50% of market share in Australia and there are many other local pizza places in the country. So if someone is to grow with good product and service at very good price there is room. Domino has done it for many years successfully and they know competition that is around. This is basic volume base low margin industry where there is plenty of competition all the time.
I disagree with your next point. If you look at Domino’s EBIT from 2018 onwards to 2022 it has increased by 42%. That will exclude 20&21 Covid impact. Even more remarkable is by 2026 EBIT would have increased by 90% on forecasted figures.
So all that debt in BS has been well spent as I explained in one of my earlier notes.If DMP decide to do so, now with 10% equity dilution the almost entire debt can be paid off.
The problem with DMP over last 2 to 3 years was with investors. They paid 50 to 60 PE at one time. The market has corrected that misstep are on much better valuation. Also remember Domino is well set up with all that investments through debt capital to expand in Germany, France, Japan and other SE Asian countries. Therefore in a industry like this 30 pe will be accepted for growing business. Over next 2 to 3 years I am expecting SP to reach the range of $70. I can also see few analysts starting talk about “is it time get back”. Morningstar target price has moved to 64. I don’t trust the analysts big statements, but once I do my own research and I will use to find out whether there others thinking the same way. Analysts get it wrong all the time like us.