PHILADELPHIA, Nov. 17, 2024 (GLOBE NEWSWIRE) -- Berger Montague PC advises investors that a securities class action lawsuit has been filed against Domino’s Pizza, Inc. (“Domino’s” or the “Company”) (NYSE: DPZ) on behalf of purchasers of Domino’s securities between December 7, 2023 through July 17, 2024, inclusive (the “Class Period”).
Investor Deadline: Investors who purchased or acquired DOMINO’S securities during the Class Period may, no later than NOVEMBER 19, 2024, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation, please contact Berger Montague: Andrew Abramowitz at aabramowitz@bm.net or (215) 875-3015, or Peter Hamner at phamner@bm.net or (215) 875-3048, or CLICK HERE.
Domino's, through its subsidiaries, operates as a global pizza company under the Domino's brand name through Company-owned and franchised stores. The Company's largest "master franchisee" – a franchisee that is charged with developing a geographical area – is Domino's Pizza Enterprises ("DPE"). As of December 31, 2023, DPE operated 3,840 stores in 12 international markets, accounting for approximately 28% of the Company's international store count and 19% of its global store count.
In December 2023, at Domino's’ 2023 Investor Day, the Company announced new long-term guidance of "1,100+" annual global net store growth for the years 2024 to 2028.
According to the lawsuit, throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (i) DPE, the Company's largest master franchisee, was experiencing significant challenges with respect to both new store openings and closures of existing stores; and (ii) as a result, Domino's was unlikely to meet its own previously issued long-term guidance for annual global net store growth.
On July 18, 2024, Domino's issued a press release announcing its Q2 2024 financial results, disclosing that it expects to fall 175 to 275 stores below its 2024 goal of 925+ net stores due to challenges in both openings and closures faced by DPE. Accordingly, the Company temporarily suspended its guidance of 1,100+ global net stores. On an earnings call held that same day, Chief Financial Officer Sandeep Reddy revealed that the long-term guidance announced at the 2023 Investor Day did not accurately reflect the extent of DPE's challenges with respect to new store openings and closures of existing stores.
On this news, Domino's stock price fell $64.23 per share, or 13.57%, to close at $409.04 per share on July 18, 2024.
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the Court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
Berger Montague, with offices in Philadelphia, Minneapolis, Delaware, Washington, D.C., San Diego, San Francisco and Chicago, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States.
Contact:
Andrew Abramowitz, Senior Counsel
Berger Montague
(215) 875-3015
aabramowitz@bm.net
Peter Hamner
Berger Montague PC
(215) 875-3048
phamner@bm.net
