Towards the end of February, shares of Domino’s (DPZ 3.79%) fell, dropping 14% through Thursday trading compared to a 1.6% decline in the wider market.
At the time, the pizza chain’s shares were estimated to be down 11% in 2023 with a decline rate of over 20% in the past full year. The fall was linked to the reaction investors had to Domino’s fourth-quarter earnings update.
The management has blamed this on increased competition, rising costs, and struggles of keeping its restaurants fully staffed.
« We experienced significant pressure on our U.S. delivery business in 2022, » CEO Russell Weiner said in a press release.
Now, the company’s executives are focused on ending the continuous fall in market shares and to do this they have chosen to level up their delivery service, hoping to make it more comfortable and valuable.
Will it work?