Risk Reward Update

Research evidence excerpt

Risk Reward Update

UpdateM

RiskRisk RewardReward– Domino's- Domino'sPizza EnterprisesPizzaLTD (DMP.AX)Enterprises LTD (DMP.AX)

DMP needs time to reset its business

PRICE TARGET A$15.70 UNDERWEIGHT THESIS

Average of DCF valuation (A$14.30; 8.1% WACC and 3% terminal growth rate) and P/E Our UW rating is based on these factors:

relative valuation of A$17.10 (13x multiple below mid-cycle, given benign top-line and margin ▪DMP is focused on restoring franchisee

outlook, applied to our 12-month forward EPS estimate). profitability, which we believe is the correct

strategy. But, we expect only modest A$18.42

operating margin improvement over FY26-

Consensus Price Target Distribution A$13.00 A$26.00 27e, as DMP looks to restore health to the

MS PT

network.Source: Refinitiv, Morgan Stanley Research Mean Morgan Stanley Estimates ▪We expect SSSg to remain under pressure

and network growth to stall the short to

medium term as DMP resets its strategy and

RISK REWARD CHART recalibrates its growth algorithm. SSSg will

likely be under pressure from increased

competition and changing consumer

AUD preferences towards fast casual formats.

A$24.00A$24.00(+29.24%)A$24.00(+29.24%)(+29.24%) ▪While valuation has de-rated, we believe

24 trough multiples remain justified given the

muted forward growth outlook and elevated

execution risk.

A$18.57A$18.57A$18.57

A$15.70A$15.70(-15.46%)A$15.70(-15.46%)(-15.46%) Consensus Rating Distribution

12 13% Overweight

60% Equal-weight

A$10.00A$10.00(-46.15%)A$10.00(-46.15%)(-46.15%) 27% Underweight

MS Rating

Source: Refinitiv, Morgan Stanley Research

AUG '25 FEB '26 AUG '26 AUG '27

Risk Reward ThemesKey: Historical Stock Performance Current Stock Price Price Target

Disruption: Negative

Self-help: Positive

View descriptions of Risk Rewards Themes here