One of the worst performers on the S&P/ASX 200 index on Friday morning has been the Domino's Pizza Enterprises Ltd (ASX: DMP) share price.
At the time of writing the pizza chain operator's shares are down 2.5% to $43.75.
Why is the Domino's Pizza Enterprises share price tumbling lower?
Investors have been hitting the sell button in a panic today following the release of the first quarter results of the U.S. based Domino's Pizza Inc.
Although the pizza chain giant delivered a better than expected quarterly result and its shares hurtled higher, it revealed that it continues to experience softness in European markets.
If this softness is occurring in the markets which the locally listed Domino's operates, it could mean that it runs the risk of falling short of its guidance again in FY 2019.
In February the company advised it expected to achieve the lower end of its EBIT guidance range of $227 million to $247 million. This compares to EBIT of $184.75 million in FY 2018.
Should you invest still?
Whilst Domino's performance has been incredibly underwhelming over the last few years, I still believe it is worth being patient with the company.
This is because I feel it is well-positioned for long-term growth thanks to its store network expansion plans. Management aims to double its store network by 2028 through the significant expansion of its European and Japanese store network.
Whilst it certainly isn't going to be plain sailing, if the company can deliver on its expansion plans I expect it to lead to above-average earnings growth over the next decade.
Overall, this could make it worth picking up shares on today's weakness if you're prepared to make a buy and hold investment. In addition to Domino's, I think Collins Foods Ltd (ASX: CKF) and Costa Group Holdings Ltd (ASX: CGC) would be good long-term investment options.
