Australia's Dominos Blasted -24% On Earnings. Overreaction?

Domino's Pizza Enterprises Ltd.'s stock in Sydney dropped 24%, its biggest decline ever, after reporting a 21% drop in first-half earnings as customers resisted price hikes implemented to offset inflationary pressures. The company stated that the increase in prices hurt customer counts, especially in Europe and Asia.

From personal experience I can confirm. I'd order Dominos weekly because they were about half the price of my local Pizza guy. After the price changes there isn't much difference, so my local dude is getting a lot more of my orders each week.

Still, seems like a big over reaction and the last few times the RSI is this low there has been between a 15% to 30% recovery. The big gap down will also draw some attention and look to get filled.

Might be some coin in a short term trade at least for anyone interested.

Worth a look.

Comment:

Continued to drop but back up 16% after that MACD cross. Still looking weak though.