BUZZ-Australia fast-food stocks in focus as Citi flags price hikes, demand risks

Citigroup
Domino'S Pizza

Citigroup

C

0.00

Domino'S Pizza

DPZ

0.00

** Australia-listed shares of quick service restaurants (QSR) in focus after Citi flags rising menu prices across major chains, highlighting cost pressures

** Citi says four of five chains tracked raised prices in April-May, with Domino's DMP.AX seeing the largest increases

** Says Domino's price hikes to support franchisee margins could test demand elasticity

** Citi flags risk that higher prices could weigh on demand, particularly for value-focused consumers

** Sees pressure on Collins Foods CKF.AX from weaker spending among core blue-collar customers amid high interest rates and fuel costs

** Sees limited upside for Guzman y Gomez GYG.AX, with growth largely priced in and risk from potential share overhang

** Notes GYG has held prices steady, strengthening relative value positioning but limiting margin upside