Is it a problem for shareholders that Italians don't like Domino's Pizza?

The pizza chain appears to have fizzled out in Italy.

| More on:
A man looks sadly away from his computer screen as he holds a slice of pizza in his hand with an open pizza box in front of him on his desk.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Domino's has reportedly left the Italian market on the back of increasing competition among local pizzerias
  • The company entered the birthplace of pizza back in 2015 through a franchising agreement
  • Still, the company is expecting to open upwards of 500 stores in financial year 2022 – just one of the reasons Citi tips it as a buy

S&P/ASX 200 Index (ASX: XJO) share and dinnertime favourite Domino's Pizza Enterprises Ltd (ASX: DMP) has reportedly suffered a major upheaval in the birthplace of pizza, resulting in its exit from the nation.

Domino's operated 29 stores over the seven years it existed in Italy. The final Italian shop front has now been locked for good, Bloomberg reports.

Though, shareholders can rest easy. The company still boasts operations in more than 90 nations while brokers remain bullish on the Domino's share price.

The stock is currently trading at $71.47, down 0.2% in late trade on Wednesday.

Let's take a closer look at the latest news on the ASX 200 pizza giant.

Domino's shares still a buy despite backing out of Italy

Increasing competition reportedly weighed on Domino's in Italy as pandemic-induced restrictions saw more pizzerias turning to or providing delivery services.

Previously, the global pizza giant – which entered Italy as part of a franchising agreement – differentiated itself from other pizza makers by offering both delivery and American-style offerings, according to Bloomberg.

But while the pizza chain appears to have fizzled out in Italy, it's ramping up across the rest of the world. Domino's opened 432 stores over the 12 months ended 2 January.

It also noted it was on track to increase its network by more than 500 stores in financial year 2022. Finally, the giant aims to boast 4,000 stores next year.  

And that's why top broker Citi is bullish on the Domino's share price. It has slapped the stock with a $92.95 price target and a buy rating, as my Fool colleague James reports. The broker said:

Our 'buy' rating is predicated on potential upside from potential [merger and acquisition] activity, upside to long term store rollout, and sales on track to rebound later in [calendar tear 2022] once the business has cycled through the abnormal comps.

Should you invest $1,000 in Domino's Pizza Enterprises Limited right now?

Before you buy Domino's Pizza Enterprises Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Domino's Pizza Enterprises Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Consumer Staples & Discretionary Shares

Supermarket trolley with groceries going up the stairs with a rising red arrow.
Consumer Staples & Discretionary Shares

Woolworths shares have soared 18% since March. Here's how much upside Macquarie still expects

Having raced higher since March’s multi-year lows, just how high can Woolworths shares go?

Read more »

A customer and shopper at the checkout of a supermarket.
Consumer Staples & Discretionary Shares

Broker watch: Are Woolworths shares a buy?

Do analysts think this supermarket giant would be a good pick for investors? Let's find out.

Read more »

Supermarket trolley with groceries on top of a red pointing arrow.
Consumer Staples & Discretionary Shares

Up 31% in a year, just how much more upside does Macquarie tip for Coles shares?

Can Coles shares smash the ASX 200 returns again in the year ahead?

Read more »

A customer and shopper at the checkout of a supermarket.
Consumer Staples & Discretionary Shares

Woolworths shares storm higher on strong Q3 update

The supermarket giant outperformed expectations during the quarter.

Read more »

A woman holds up hands to compare two things with question marks above her hands.
Consumer Staples & Discretionary Shares

Compare the pair: Accent Group vs JB Hi-Fi shares

Which is a better option out of these two consumer discretionary shares. 

Read more »

person sitting at outdoor table looking at mobile phone and credit card.
Consumer Staples & Discretionary Shares

If I could only own 1 ASX retailer for the next 5 years it would be this one

This stock could be a great long term pick according to one leading broker.

Read more »

A couple in a supermarket laugh as they discuss which fruits and vegetables to buy
Consumer Staples & Discretionary Shares

Coles share price drops on Q3 update

Let's see how the supermarket giant performed during the three months.

Read more »

Business man with a cigar in his mouth counting US dollars.
Consumer Staples & Discretionary Shares

Both Labor and the Coalition to crackdown on illicit tobacco trade, which ASX stocks could benefit?

Could a tobacco crackdown benefit these stocks?

Read more »