The Domino’s Pizza Enterprises Ltd. (ASX: DMP) share price is down almost 5% because of a broker.
Domino’s Pizza Enterprises is the largest pizza chain in Australia in terms of both network store numbers and network sales. It is also the largest franchisee for the Domino’s Pizza brand in the world. The company holds the exclusive master franchise rights for the Domino’s brand and network in Australia, New Zealand, Belgium, France, The Netherlands, Japan, Germany and Luxembourg with more than 2,400 stores.
Why The Domino’s Share Price Is Down 5%
Broker Morgan Stanley has predicted that Domino’s is not going to meet its guidance of profit growth of 10% to 20% and that its profit will no longer consistently grow by double digits because it has reached too large a size to continue that growth rate.
The broker also mentioned that competitors are raising their game, further impacting the pizza company. Morgan Stanley believes the Domino’s share price could be at $41 in a year from now.
I agree that Domino’s growth over the next five years is going to be a lot slower than the last five years. That’s why I would prefer to buy one of the growth shares revealed in the free report below.
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