Domino's Pizza Share Discussion Threads

[steeplejack] 09/3/2017 11:14

It's a good opportunity for the brokers to drum up some business.The fall might be an overreaction to a modest shortfall in expectations but when you start seeing brokers change from a buy recommendation to a hold on the back of figures,it's clear they're behind the curve.What does concern me,is that the market might be inclined to treat this stock like a Whitbread.That stock was in the mid 50s a couple of years back and now trades in the mid 30s with all the furore about increasing competition to Premier inns etc.If the Chairman had been less congratulatory about 2016 and addressed the tough sales comparatives in the opening weeks of 2017,the market might be reacting more soberly.Looks a bit like the Chairman wished to wallpaper over a crack in the sales momentum.

[andrewbaker] 09/3/2017 10:55

Crazy! What do people want? A growing business, at home and abroad, in a area of growing demand (eating out and take-away/home delivery) making good profits and paying a reasonable dividend, is my idea of a good investment. It may be a tad pricey because it's in demand, but that's a plus for a sound safe company, and worth paying a little extra, IMHO. I'll be looking to add whilst the price stays at this low level: averaging down can be a good tactic when the right share is concerned, and DOM is in my view, the right share.

[jamesjamiebarlow] 09/3/2017 10:55

At what point would you guys buy more?

[philanderer] 09/3/2017 10:28

Hell of a volume :-)

Auction

[henryatkin] 09/3/2017 09:19

I don't believe like for like is the issue. After all total sales are up 14% so they are not hiding anything. What I believe has spooked some investors is the fall in cash flow. Both 'net cash generated from operating activities' & 'Cash and cash equivalents at end of period are down and that spooks a lot of investors. They are actually generating less cash than last year! Why? Can the fall be justified by investment that will increase future earnings or is it just higher costs/lower margins or is it a tax issue?

Given that profits are up by the same percentage as turnover I'd say margins look safe. My take is that the fall in cash generated is down to a 50% increase in Income Tax expense from £13.5m to £20m.

There has also been a big increase in the cash account of over £40m investment of joint ventures & associates. In other words the fall in cash flow is down to investing for the future and an increase in this years tax. Not a problem for me.

[philanderer] 09/3/2017 09:01

Downgrade from Peel Hunt from 'add' to 'hold'... new tp 400p , down from 430p


reiteration from Singer

9th march N+1 Singer hold tp 390p unchanged

[steeplejack] 09/3/2017 08:41

You're quite right of course,the market is only too keen to put the boot in when (inevitably) growth starts to moderate.Whitbread has recently fallen from grace.Norway is hardly a sizeable market to exploit.Nonetheless,Switzerland and Germany are encouraging.

[steeplejack] 09/3/2017 08:37

Oh I see,I thought you meant like for like was down 10%!

[aa29] 09/3/2017 08:33

Share price was down 10+% when I posted

[steeplejack] 09/3/2017 08:28

Market doesnt like LFL, -10%.Where do I find this figure please?

[aa29] 09/3/2017 08:12

The trouble with great growth stocks like this has been is that any slow down in sales will be hammered by the market.

[aa29] 09/3/2017 08:09

Market doesnt like LFL, -10%.

Drive overseas? Norway??? when they couldn't make Germany work and had to get Dom Pizza Enterprises in to get it done.

[steeplejack] 09/3/2017 08:09

Market agrees with you AA29

[steeplejack] 09/3/2017 07:51

"Seems they're having to work harder and harder to maintain the growth."That's inevitable in the UK,hence the drive overseas.

[aa29] 09/3/2017 07:36

Not sure I'd regard these as 'excellent' figures. LFL figures are reduced and its a warning sign for me that they have to quote LFL sales growth without the effect of splits when they've never needed to in the past. Seems they're having to work harder and harder to maintain the growth.

[steeplejack] 09/3/2017 07:17

Excellent figures.Dividend up 15.6% .Strong performance in the UK,Switzerland and Germany.There's been a moderation of like for like sales in the UK in the current year but it remains around 4% and overseas remains very healthy.Current TradingSales growth in the first nine weeks of 2017 trading is as follows: Total sales LFL sales excluding LFL sales including growth splits splits ------------- ------------ -------------------- -------------------- UK 8.3% 3.9% 1.5% ------------- ------------ -------------------- -------------------- ROI 12.3% 12.3% 12.3% ------------- ------------ -------------------- -------------------- Switzerland 17.7% 9.4% 9.4% ------------- ------------ -------------------- -------------------- During this period, we have opened 11 stores in the UK (2015: 5 stores).

[suetballs] 09/3/2017 07:15

Great results and an acquisition too.
Scope for lots more expansion.
Suet

[philanderer] 03/3/2017 10:04

Grab a slice of good value Domino’s, says Numis


Takeaway chain Domino’s Pizza (DOM) is trading on an attractive price/earnings ratio ahead of its full-year results, says Numis.

Analyst Richard Stuber reiterated his ‘buy’ recommendation and target price of 446p on the stock, which was trading flat at 385p at the time of writing. The group implemented a 3-for-1 share split last summer, which explains the big drop in our graph.

‘For full-year 2017, we forecast 4% like-for-like growth in the UK, with another 80 store openings... our forecast is conservative in our view, given its track record - averaging 9.1% over the last 10 years,’ said Stuber.

‘Adjusting for the value in its international business, we calculate the Domino’s is trading on 21x 2017 estimates, attractive for an asset-light, high returns business growing earnings at 10% per annum with excellent free cashflow generation.’

[philanderer] 02/3/2017 12:23

2nd march Numis buy tp 446p

reiterates

[philanderer] 01/3/2017 08:54

Peel Hunt downgrading from buy to add , tp unch @ 430p

[philanderer] 28/2/2017 08:46

Read across from GRG this morning

[philanderer] 21/2/2017 17:57

Time for a photo ;-)

Domino's Pizza UK ‏@Dominos_UK 35 minutes ago

🎺 It's #TwoForTuesday! 🎺 That means it's Buy One Get One Free on Medium and Large #Pizzas tonight. Order at .

[philanderer] 15/2/2017 08:55

updated:

15th feb Peel Hunt buy tp 430p
14th feb Canaccord buy tp 440p
9th feb Berenberg buy tp 425p
6th jan Numis buy tp 446p
28th nov Barclays equal weight tp 430p
28th nov Credit Suisse outperform tp 475p
13th oct Beaufort buy -
12th oct N+1 Singer hold -


12th oct ++++ Trading statement ++++