NEW YORK, NY / ACCESSWIRE / October 15, 2024 / Pomerantz LLP announces that a class action lawsuit has been filed against Domino's Pizza, Inc. ("Domino's" or the "Company") (NYSE:DPZ) and certain officers. The class action, filed in the United States District Court for the Eastern District of Michigan, and docketed under 24-cv-12477, is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired Domino's securities between December 7, 2023 and July 17, 2024, both dates inclusive (the "Class Period"), seeking to recover damages caused by Defendants' violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act") and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.
If you are a shareholder who purchased or otherwise acquired Domino's securities during the Class Period, you have until November 19, 2024 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Danielle Peyton at [email protected] or 646-581-9980 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
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Domino's, through its subsidiaries, operates as a global pizza company in three segments: U.S. Stores, International Franchise, and Supply Chain. Domino's offers pizzas and other food products under the Domino's brand name through Company-owned and franchised stores. The Company's largest "master franchisee"-i.e., a franchisee that is charged with developing a geographical area and may profit by sub-franchising and selling food and equipment to those sub-franchisees-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, Domino's hosted its 2023 Investor Day, during which Defendants provided new long-term guidance of "1,100+" annual global net store growth for the years 2024 to 2028.
The Complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operations, and prospects. Specifically, 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; (ii) as a result, Domino's was unlikely to meet its own previously issued long-term guidance for annual global net store growth; (iii) accordingly, Domino's business and/or financial prospects were overstated; and (iv) as a result, the Company's public statements were materially false and misleading at all relevant times.
On July 18, 2024, Domino's issued a press release announcing its Q2 2024 financial results. Among other items, Domino's disclosed that it "expects it will fall 175 to 275 stores below its 2024 goal of 925+ net stores in international primarily as a result of challenges in both openings and closures being faced by Domino's Pizza Enterprises (‘DPE'), one of its master franchisees." Accordingly, "[t]he Company is temporarily suspending its guidance metric of 1,100+ global net stores until the full effect of DPE's store opens and closures on international net store growth are known." On an earnings call held that same day to discuss the Company's Q2 2024 results (the "Q2 2024 Earnings Call"), the Company's Chief Financial Officer Defendant Sandeep Reddy further 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.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
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SOURCE: Pomerantz LLP