Levi & Korsinsky LLP
11/06/2024 | Press release | Distributed by Public on 11/06/2024 12:29
Domino’s Pizza Fails to Deliver
Domino's Pizza burned investors when it recently botched its long-term financial guidance. As a result, investors dumped the stock, causing share price to plummet almost 14% overnight. Investors singed by the drop have now filed a class action to recoup some of their lost "dough." According to that lawsuit, in 2023, Domino's executives issued guidance stating that the pizza giant expected to open 1100 stores globally by 2028. They also suggested that the Company was on track for sales and income growth. Executives failed to tell investors and analysts that, at the time of that guidance, Domino's was already experiencing major challenges with respect to store closings and was likely to miss its previously issued financial guidance. Investors got served a piping hot slice of the truth in 2024 when Domino's issued a press release stating that the Company had "suspended" its goal of eleven hundred store openings. Domino's also announced some store closures internationally. Analysts and investors reacted negatively to that news, and aggrieved investors are now signing up for the class action lawsuit.