SAN DIEGO, Sept. 27, 2024 (GLOBE NEWSWIRE) -- A class action lawsuit has been filed on behalf of all persons and entities who purchased or otherwise acquired Domino’s Pizza, Inc. (NYSE: DPZ) (“Domino’s” or the “Company”) securities between December 7, 2023 and July 17, 2024, inclusive (the “Class Period”), charging the Company and certain of its senior executives with violations of the federal securities laws (collectively, “Defendants”).
Domino’s investors have until November 22, 2024 to seek appointment as lead plaintiff of the Domino’s class action lawsuit.
If you purchased Domino’s securities between December 7, 2023 and July 17, 2024, and suffered substantial losses, and you wish to obtain additional information or serve as lead plaintiff in this lawsuit, you may submit your information and contact us here: https://dicellolevitt.com/securities/dominos-pizza/.
You can also contact DiCello Levitt attorneys Brian O’Mara or Hani Farah by calling (888) 287-9005 or emailing investors@dicellolevitt.com. Those who inquire by email are encouraged to include their mailing address, telephone number, and the number of shares purchased.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice.
Case Allegations
Domino’s is a global pizza company that offers pizzas and other food products under the Domino’s brand name through Company-owned and franchised stores.
The Domino’s lawsuit alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s growth and financial prospects. For example, during the Company’s 2023 Investor Day, Defendants provided new long-term guidance of “1,100+” annual global net store growth. Defendants reaffirmed this guidance several times throughout the Class Period, telling investors they “feel really strongly about the guidance,” adding they “saw some really nice momentum” in 2023.
However, these statements were false and misleading. In truth, Domino’s Pizza Enterprises (“DPE”), the Company’s largest master franchisee, was experiencing significant challenges with respect to both new store openings and closures of existing stores. As a result, Domino’s was unlikely to meet its own previously issued long-term guidance for annual global net store growth and the Company’s financial prospects were overstated.
The truth was revealed on July 18, 2024, when Domino’s announced its financial results for the second quarter of 2024. Less than one year after providing bullish guidance concerning store growth, Defendants revealed that the Company “expects it will fall 175 to 275 stores below its 2024 goal of 925+ net stores in international primarily as a result of challenges in both openings and closures being faced by [DPE].” Accordingly, “[t]he Company is temporarily suspending its guidance metric of 1,100+ global net stores until the full effect of DPE’s store opens and closures on international net store growth are known.” On an earnings call held that same day, the Company’s Chief Financial Officer Sandeep Reddy revealed that the long-term guidance announced at the 2023 Investor Day did not accurately reflect the extent of DPE’s challenges with respect to new store openings and closures of existing stores. On this news, Domino’s stock price fell $64.23 per share, or 13.6%, to close at $409.04 per share on July 18, 2024.
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