Own Domino’s shares? The ASX 200 pizza giant is biting into a new market

Those invested in Domino’s Pizza Enterprises Ltd (ASX: DMP) shares might be surprised to hear of the S&P/ASX 200 Index (ASX: XJO) pizza giant’s latest foray. It’s taking on a new market with a trademark spin, promising burgers “made to be delivered”.

But, while the pizza favourite is spruiking a new foray, it’s not far from the company’s stomping ground. Let’s take a closer look.

The Domino’s share price closed Monday’s session at $71.02.

Domino’s ‘bites’ into burgers designed to be delivered

The ASX 200 pizza mogul is taking a slice of the burger market, but its share will retain a definite Domino’s-style spin.

“No more soggy bread rolls and limp lettuce,” promises Domino’s ANX CEO David Burness. “Domino’s is bringing home the burger – on a pizza!”

The news comes as those invested in Domino’s shares await the release of the company’s financial year 2022 earnings, set to drop on 24 August.

The company’s after tax profit slumped 5.3% in the first half, as my Fool colleague Tony reported in February.

It also noted its same store sales growth was expected to miss its long-term target range in the second half.

The shiny new marketing campaign accompanying the burger-style offerings targets what Burness dubs “the delivery generation”.

It was put together by creative agency It’s Friday – which launched in January and boasted the company as a founding client.

Domino’s culinary innovation and development chef Michael Treacy commented on the new offerings, saying:

We live in the golden age of delivery and burgers have yet to ‘ketchup’ … they were simply never designed to be delivered.

What makes our Burger Joint pizzas so incredible is that our premium ingredients were carefully chosen for maximum burger goodness, while ensuring they could be delivered …  just like a Domino’s pizza.

The range – made up of four menu items – dropped in Australia on Monday.

Domino’s share price snapshot

It’s been a rough year so far for the Domino’s share price.

It has slumped 42% since the start of 2022. For comparison, the broader ASX 200 has dumped 7.5% year to date.

Though, it’s still trading higher than it was before the COVID-19 pandemic took hold in 2020.

The post Own Domino’s shares? The ASX 200 pizza giant is biting into a new market appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. 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 Scott Phillips.

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