Columbia Student Mahmoud Khalil Fights Arrest as Deportation Case Moves to New Jersey 
Parents abused by their children often suffer in silence – specialist therapy is helping them find a voice 
Fortescue Expands Copper Portfolio With Full Takeover of Alta Copper 
Nomura Expands Alternative Assets Strategy With Focus on Private Debt Acquisitions 
Every generation thinks they had it the toughest, but for Gen Z, they’re probably right 
Coca-Cola’s Proposed Sale of Costa Coffee Faces Uncertainty Amid Price Dispute 
Yes, government influences wages – but not just in the way you might think 
Can your cat recognise you by scent? New study shows it’s likely 
Trump Sues BBC for Defamation Over Edited Capitol Riot Speech Clip 
Why have so few atrocities ever been recognised as genocide? 
Locked up then locked out: how NZ’s bank rules make life for ex-prisoners even harder 
Youth are charting new freshwater futures by learning from the water on the water 
FAA Unveils Flight Plan 2026 to Strengthen Aviation Safety and Workforce Development 
FDA Says No Black Box Warning Planned for COVID-19 Vaccines Despite Safety Debate 
Apple Explores India for iPhone Chip Assembly as Manufacturing Push Accelerates 
Korea Zinc Plans $6.78 Billion U.S. Smelter Investment With Government Partnership 
United Airlines Tokyo-Bound Flight Returns to Dulles After Engine Failure 
Domino's Pizza Enterprises, an Australian franchise, has been served with a shareholder class action, alleging misleading statements about its performance in Japan. The lawsuit, initiated by Echo Law, follows Domino's November 2021 announcement of strong sales in Japan, which shareholders claim misrepresented the company’s outlook.
Domino's Faces 2.5% Share Drop Amid Class Action Over Misleading Statements on Japan Operations
Domino's Pizza Enterprises, an Australian pizza franchise, announced on September 9 that it has been served with a shareholder class action. The lawsuit alleges Domino's engaged in misleading or deceptive conduct regarding its anticipated performance in Japan.
The company's shares experienced a 2.5% decline to A$29.18, marking their lowest since late August, per Reuters.
Echo Law, an Australian legal consultancy firm, has initiated the proceeding on behalf of Domino's shareholders, who acquired an interest in the company by participating in an equity swap confirmation between August 18, 2021, and November 3, 2021.
According to Echo Law's website, the class action was initiated in response to Domino's November 3, 2021 announcement.
Echo Law did not promptly respond to Reuters' request for further commentary.
In November 2021, Domino's Japan operations reported "excellent compounding sales" and continued to experience robust new store openings.
"As a result of structural changes in marketing, pricing and store penetration, current sales and customer counts remain materially higher than corresponding period pre-COVID," the pizza chain had said in 2021. In July, Domino's shares experienced a decline of over nine years due to analysts' downward analysis of their earnings.
Domino's Shares Plunge After Store Closures in Japan and France, Analysts Lower Earnings Forecasts
Analysts reduced their earnings forecast for Domino's Pizza Enterprises, an Australian company, following its decision to close low-volume stores in France and Japan. As a result, the company's shares plummeted to their lowest level in over nine years on July 18.
Domino's stock experienced a 9.6% decline to A$32.62 at 0052 GMT, its lowest level since February 2015, while the benchmark index remained relatively unchanged.
After the market closed on July 17, the pizza manufacturer announced that it anticipates store growth to be flat to slightly positive in its current fiscal year. Additionally, it has announced its intention to shut up to 80 low-volume stores in Japan and 10-20 stores in France.
According to analysts at Macquarie, the company's emphasis on enhancing store profitability is prudent. However, expectations may experience a short-term decline.
Domino's Japan established numerous "immature stores" between 2020 and 2023.
"There were too many loss-making stores in Japan with too long a path to profitability, while the French store closures reflect the challenges for DMP in that market as the company repositions its operational focus,"UBS said.
The company anticipates a return to positive same-store sales in Japan in the fiscal year 2025, which commenced this month. Additionally, it expects an overall group store growth of 3%-4% in fiscal 2026.
“Given the lower levels of store openings in FY24-FY26, the previous timeline of 2033 will not be achieved,"Domino's said on July 17.
Morgan Stanley analysts decreased their earnings estimates for fiscal 2025 and 2026 by 3%. In response to modifications to their network growth assumptions, Macquarie analysts reduced their earnings forecasts for fiscal 2024 and 2025 by 2% and 5%, respectively.
The annual results of the retail food outlet operator are scheduled to be disclosed in August. It withdrew its fiscal 2024 outlook in January because its first-half profit forecast fell short of expectations.
