Domino’s share price sinks 7%, giving back most of Wednesday’s gains

The S&P/ASX 200 Index (ASX: XJO) is having another fabulous day on the ASX boards this Thursday so far.

At the time of writing, the ASX 200 is up a healthy 0.79% at just over 7,050 points. But the same can’t be said of the Domino’s Pizza Enterprises Ltd (ASX: DMP) share price.

Domino’s shares are having a clanger today. The pizza company was down a nasty 7.67% at $66.63 a share in early afternoon trade. This might surprise investors, given Domino’s shares rocketed by a similar amount (7.57%) yesterday upon the release of the company’s full-year earnings for FY2022.

As we covered yesterday, Domino’s reported a 4.6% rise in global sales to $3.92 billion. Revenues were also up by 4.1% at $2.29 billion. But that wasn’t enough to stop Domino’s from reporting a 10.5% decline in underlying earnings before interest and tax (EBIT) to $262.9 million.

Underlying net profit after tax (NPAT) also slumped by 12.5% to $165 million. While underlying earnings per share (EPS) fell by 12.6% to 190.6 cents per share.

The pizza slinger announced a final dividend of 68.1 cents per share. That will come partially franked at 70%. That left its full-year dividend for FY22 at $1.565 per share, a 9.8% drop on last financial year’s dividend total.

Why are Domino’s shares giving back yesterday’s gains?

So perhaps investors thought these numbers would be even worse yesterday, given the size of the gains that Domino’s enjoyed by the end of the trading session. But it seems that investors have gotten a major case of ‘cold feet’ today.

There are no other news or announcements out of Domino’s, so this seems to be the most likely explanation as to why the company’s shares are falling so dramatically this Thursday.

At the current Domino’s Pizza share price, this ASX 200 share has a market capitalisation of $5.78 billion, with a dividend yield of 2.6%.

The post Domino’s share price sinks 7%, giving back most of Wednesday’s gains appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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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