Class Action Filed for Domino's Pizza (NYSE: DPZ) Investors
Legal Action for Domino’s Pizza Shareholders
In recent developments, Kirby McInerney LLP has initiated a class action lawsuit on behalf of investors in Domino’s Pizza, Inc. (NYSE: DPZ). This lawsuit is filed in the U.S. District Court for the Eastern District of Michigan. The class action focuses on those who acquired securities of Domino’s from December 7, 2023, to July 17, 2024. Investors are encouraged to apply to the court by November 19, 2024, if they wish to be appointed as lead plaintiffs.
Recent Financial Challenges at Domino’s
On July 18, 2024, Domino’s made a significant announcement regarding its second-quarter financial results for 2024. The company has acknowledged various challenges faced by its master franchisee, particularly Domino’s Pizza Enterprises (DPE), noting difficulties with both store openings and closures. As a consequence, the company projected a shortfall in reaching its goal of more than 925 net new international stores, expecting to fall between 175 to 275 stores short for the year.
Impact on Company Guidance
Furthermore, Domino’s disclosed that it is temporarily suspending its guidance metric of achieving more than 1,100 net global stores until the impact of DPE's situation becomes clear. This was elucidated further by the company's Chief Financial Officer, Sandeep Reddy, during an earnings call. He explained that the long-term growth strategies presented during the previous year’s Investor Day did not accurately reflect the ongoing operational challenges faced by DPE.
Stock Performance Reaction
The announcement had a significant effect on Domino’s stock performance. Following the report, Domino’s share price plummeted by $64.23 per share, translating to a decline of approximately 13.6%. This drop brought the stock price down from $473.27 on July 17, 2024, to a closing price of $409.04 the next day, highlighting the market's adverse reaction to the news.
Allegations in the Class Action
The class action lawsuit alleges that Domino’s made misleading statements regarding the financial health and operational performance of its largest master franchisee, DPE. Specifically, the lawsuit argues that the company failed to disclose the significant challenges DPE faced in managing both new store openings and closures, leading to an unrealistic guidance on annual global net store growth.
Next Steps for Affected Investors
Investors who have acquired Domino’s securities or who have additional information relevant to this investigation are urged to reach out. You can contact Thomas W. Elrod of Kirby McInerney LLP for assistance in discussing your rights or any interests concerning this matter. It is essential for affected parties to act swiftly as deadlines to participate may be approaching.
Kirkby McInerney LLP Overview
Kirby McInerney LLP is a plaintiffs’ law firm based in New York that specializes in various practices, including securities and antitrust litigation. The firm is dedicated to protecting the rights of shareholders in securities litigation, with a history of successful recoveries summing up to billions of dollars. For further information about the firm, potential clients can visit its website for resources.
Frequently Asked Questions
What is the class action lawsuit about?
The lawsuit is filed on behalf of investors who acquired Domino's Pizza, Inc. (NYSE: DPZ) securities, alleging that the company made misleading statements regarding its financial condition related to challenges faced by its master franchisee, DPE.
How can I participate in the class action?
Investors interested in participating can apply to the court to be appointed as lead plaintiffs by the set deadline. It is advisable to consult with legal counsel for guidance.
What are the implications of Domino's recent financial results?
The financial results revealed challenges in store openings and closures, leading to a revision of the company's growth outlook and a significant drop in its stock price.
Who can I contact for more information?
For more information, interested parties can reach out to Thomas W. Elrod of Kirby McInerney LLP or visit the firm's website for detailed contact options.
What is Kirby McInerney LLP's focus?
Kirkby McInerney LLP concentrates on plaintiffs’ cases in securities, antitrust, whistleblower, and consumer litigation, striving for justice on behalf of its clients.
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