Fast food pizza retailer Domino's has this morning announced a £15m share buyback programme, in an effort to turn the tide of its steadily declining share price.
The programme will run from today until 19 October, and the business will cancel the ordinary shares it buys to reduce the share capital.
The announcement from Domino's comes as an increasing number of investors have been shorting its stock. A total of nine institutions currently hold a combined short position of 6.91 per cent.
According to analysts at Liberum, Domino's saw the largest build in short positions in the first week of this month.
The broker also added Domino's to its list of top 10 sells across Europe “on the belief a strategic re-set is required as franchisees are overburdened by cost inflation and area splits, and competition is intensifying”.
Canaccord Genuity noted at the end of last month that the stock was trading below its five- and 10-year averages and looked “increasingly vulnerable” to a bid from its Australian or US arm.
Yesterday London-listed DP Eurasia, one of the biggest franchisees of Domino's Pizza, announced it had tripled sales in Russia.