The Domino's Pizza Enterprises Ltd (ASX: DMP) share price is down 3.6% to $37.19 this morning and is now down around 8% over the past week on the back of investor worries its franchises and same-store sales in Europe, Japan and Australia may not grow as strongly as forecast.
Specifically, Domino's original and flagship U.S business trading under the Domino's Pizza, Inc. (NYSE: DPZ) ticker reported softer-than-expected same store sales overnight for the period ending June 30, 2019.
While Domino's US same-store sales have no real bearing on what ASX-listed Domino's may achieve in regions like Australia, Japan, France and Germany there is one globally-reaching trend analysts are blaming Domino's slowing U.S. sales on.
The rise of aggregated fast-food menu providers or delivery apps (often well funded and prepared to operate at a loss) such as UberEats, Grubub, Deliveroo and Menulog may mean spoilt-for-choice consumers start ordering Domino's pizzas less in Australia or Japan for example.
ASX-listed Domino's shares are down around 23% over the past year as investors reassess its growth potential and as the company makes a habit of missing its own growth forecasts.
I remain of the view that Domino's best growth days are behind it. As such I'm not a buyer of shares.
