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Australia's Domino's Pizza says it 'all misread' Japanese...

"Dakota" (2018-02-25)

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By Turkey cock Westbrook

SYDNEY, Feb 14 (Reuters) - Australian fast-solid food mountain range Domino's Pizza pie Enterprises Ltd on Midweek aforementioned it had made such a haschisch of a Christmas Day advancement in Nippon that it had to confuse off pizza dough, sending its shares sliding.

Domino's determination to pop the question simply enormous pizzas during the crucial year-conclusion trading period, and non its wide menu, backfired so naughtily that first-one-half gross in its largest securities industry by gross sales dropped 8.8 per centum.

"We completely misread that for our business ... we actually lost some of our heavier users, and that resulted in a much weaker Christmas which resulted in a much weaker result for Japan," Domino's Main Executive director Police officer Father Meij said on a league call in with journalists.

"I mean, we even had to throw away food, it was that disappointing in that Christmas window."

The misunderstanding comes sixer months afterwards Domino's damned problems with its French saving app, which struggled with apostrophes in Geographical region addresses, for dropping shortstop of its outgrowth targets lowest twelvemonth.

Together with sloughy gross sales increment in Australia and New Zealand, where the society cut its same-computer storage development predict by a pct point, the fumbled furtherance in Nihon set profits for the biggest Domino's surgical operation outside the Joined States down the stairs analyst forecasts.

Net earnings for the sixer months to December. 31 roseate 17.3 pct to A$58.7 billion ($46 million), trailing behind a Deutsche Cant foreshadow for yearly turn a profit of A$144 million, level though the companionship promised a stronger second-one-half.

That spooked dominoqq investors expecting infuse increase to absolve the stock's lofty multiple, since it trades at a price-to-lucre ratio of 43.5, compared with an average out of 15.5 crosswise the broader S&P/ASX 200 index number.

Domino's shares throw off 7 percent, their largest daily drop curtain since death Aug when the keep company number one mentioned its problems in France, to barter at their last in a hebdomad.

"Seventeen percent profit growth is still a very good number but this stock has been priced for higher growth," aforesaid Michael McCarthy, Top dog Food market Strategian at brokerage house CMC Markets.

"To justify that you really need strong growth rates and you certainly don't want to see downward revision of those growth rates and that is, unfortunately for Domino's shareholders, exactly what's happened today."

The company, which holds the rights to the Domino's franchise in vii countries from Japanese Archipelago to France, stated an interim dividend of 58.1 cents, compared to 48.4 cents per plowshare from a twelvemonth ago.

It reaffirmed its expectations for full-twelvemonth net income net income maturation "in the region" of Sir Thomas More than 20 percent, with same-computer storage gross revenue improvements in all markets. ($1 = 1.2724 Australian dollars) (Reportage by Tom Westbrook in Sydney. Extra reporting by Ambar Warrick in Bengaluru; Redaction by Stephen Coates)

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