Domino’s Pizza Enterprises Ltd. (ASX: DMP) is enjoying its second consecutive day of share price growth following on last Thursday’s crash.
At time of writing ,the Domino’s share price is up 1% to $118.12 per share.
Factoring in Friday’s 0.7% gain, that still leaves Domino’s shareholders down 16.8% since last Wednesday’s closing bell.
What spooked investors on Thursday?
Domino’s share price dropped a gut wrenching – for some – 18.4% on Thursday. The pizza chain finished the day trading at $116.12 per share.
The cause?
A less than stellar trading update on the company’s annual general meeting (AGM), released Wednesday night after market close.
As my Foolish colleague James Mickleboro wrote on the day, that update:
[R]evealed a severe deterioration in the performance of the Domino’s Japan business once COVID restrictions lifted. As a result, management warned that it can no longer forecast whether FY 2022 Japan sales and earnings would surpass those recorded in FY 2021.
The big fall wiped some $2.7 billion from the company’s market cap.
That had some shareholders running for the exits and some, who held tight, tossing in their sleep.
But not Domino’s biggest shareholder.
Domino’s biggest shareholder holding tight
Jack Cowin is not only Domino’s Pizza’s chairman, he’s also its biggest shareholder.
As the Australian reported, that meant that last Thursday Cowin watched his 23 million shares in the pizza chain lose roughly $600 million.
But Cowin’s not heading for the exits. Or, apparently, losing any sleep over the single day event.
According to Cowin (quoted by the Australian), “I did look at the share price on Thursday, it goes up and down, but it is paper, and the only time it is significant is when you sell. And I am not a seller so that didn’t come into the equation.”
Domino’s share price snapshot
Despite last week’s 1-day crash, the Domino’s Pizza share price remains up 35% over the past 12 months. By comparison, the S&P/ASX 200 Index (ASX: XJO) has gained 18% during that same time.
Over the past month Domino’s is down 17%.
The post Domino’s (ASX:DMP) biggest shareholder dropped $600 million last Thursday. Here’s why he’s not worried appeared first on The Motley Fool Australia.
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More reading
- These were the worst performing ASX 200 shares last week
- Targets slashed: Why these top brokers aren’t so rosy on the Domino’s (ASX:DMP) share price
- Top brokers name 3 ASX shares to sell today
- Top broker says Domino’s (ASX:DMP) share price is cheap after selloff
- Why Domino’s, Inghams, Kogan, and Paradigm shares are sinking
The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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