New York-based Dominos has been rocked by an initial public offering (IPO) on the back of the news that its sales forecasts had not met forecasts and that it could face a lawsuit over the matter.
The company said it was considering an option to raise money in a new offering.
Dominos was founded in 1851 in San Francisco and has grown from a modest chain of specialty pizza restaurants to become a leading global food and beverage chain.
The news that the firm had not been able to meet sales expectations sparked a sell-off in shares and an IPO on Thursday, but the company had a second offering planned later in the year.
On Friday, the stock price fell by 2.5 per cent to $14.20 a share, which is a 13.7 per cent fall from the previous day’s closing price.
In its filing, Dominos said that it expected that its expected sales of $5.3 billion in 2021 would fall to $4.7 billion in 2022, a net loss of $3.5 billion.
Dominas stock has been trading at about $19 per share for the past several months.
Investors are likely to be encouraged by the stock’s turnaround and the fact that the company is also seeking to raise cash by selling shares.
The stock’s stock has risen from a low of $13.00 on February 9 to close at $17.50 on Friday.
In the IPO filing, the company said that the sale of stock would provide it with the funds to finance the next round of public offering.
The IPO is expected to close on March 20.