UBS CUTS DOMINO'S PIZZA PRICE TARGET TO 225 (230) PENCE - 'SELL' |
"Nothing goes Up in a Straight Line!" Well...
'Apparently' - Dominos does for the last 24 Trading Days and Counting!
The sun is out ... now where are my 'Shorts'!? |
Overpriced IMHO |
Hound of the Baskervilles |
Berenberg reiterates 'sell' tp 200p cut from 210p |
smurfy, very nicely put together. Looks like they're really between a rock and a hard place outside the UK. At these low prices they can't even cover their costs and also are not able to increase sales.. Seems like they didn't really do their homework before plowing in! |
'Domino's stockpiles toppings to beat any no-deal Brexit'
Pizza chain forks out £7m on imported foods such as its Portuguese tomato sauce to offset any shortages |
Depends upon the competition. Plenty of sh1tty pizza and kebab places where I am in Finland selling sh1tty 8/9e pizzas. DOM would have to build a market first as new boys, and this takes time. Will the market take new 15/18e pizza joints?
As Wild says "very challenging". There has to be some big structural variables between UK and European target audiences. Employment? Disposal incomes? |
Let's compare the pizza prices to the UK for a plain old Cheese and Tomato.
UK
Original Cheese & Tomato
£14.99
hxxps://www.dominos.co.uk/menu
Germany
1 x Margherita
8,49€ (£7.80)
Large (32cm) Klassik Crust (Their large is 2cm smaller than UK)
hxxps://bestellen.dominos.de/estore/en/ProductMenu?serviceMethod=Pickup
Sweden
Domino's MARGARITA Pizzabyggaren
Large 34cm
99 kr (£8.47)
hxxps://www.dominos.se/pages/order/#!/section/Food/category/AllEntrees/
Norway
MARGHERITA
Stor 36cm (8 Stykker)
119.00kr (£10.96)
hxxps://www.dominos.no/menu/kokstad#pizzas/margherita
So despite their 'cheaper' international prices they are struggling.
“The performance of our International business is very challenging and trading visibility remains limited. The weakest performance was in Norway, although we also saw increasing losses in Sweden and Switzerland,” Wild said in a statement. |
Stock is up... what?
I guess the market is cheering the departure of Mr Wild more than they're booing the abysmal performance.. |
I'd like to say more of the same, but international really is dragging now. What looked like a potential turnaround story is going to take a while.
Technically, this news was out 5 days ago with the collapse of the descending triangle support. Rumour sold 5 days ago, buy the fact? |
The chief executive of Domino’s is set to step down, the pizza chain said today as it revealed that profits plunged in the first half of 2019.
Domino’s added over £50m onto its debt pile for the period, though, bringing net debt up 31 per cent to £238.8m, guiding to a year-end target of £220m-£230m.
Basic earnings per share plummeted 26.4 per cent to just 5.3p.
But Domino’s still raised its interim dividend 3.7 per cent year on year to 4.2p per share. |
How much will the shares fall today.
Despite the marginal increase in dividend the ceo going Stephen Helmsley retiring international woes franchise woes debt increasing all add up in my book to a strong sell.
20% is my guess. |
Interim results are out, pretty much what everyone expected. Low single digit UK growth, disastrous international.
The only bright spot is the (long overdue) resignation of the CEO and appointment of ex McDonalds VP of Marketing to Marketing Head of Domino's, hope this can stop the bleeding but will probably take over a year. |
An old news release from their corporate website. We're far away from the 400 stores outside the UK (including 125 in Sweden) and haven't opened in Stockholm as targeted in 2018 below.
"Domino’s Pizza, the UK’s favourite pizza brand has officially arrived in Sweden with the formal opening of the first Domino’s store in Malmӧ.
...
DPG plans to open a further five to six stores in Malmӧ this year, followed by a first store in Stockholm in early 2018. The Group believes the Swedish market has a capacity to operate 125 Domino’s stores.
...
In November 2016, DPG announced it had identified opportunities for a total of 400 stores outside the UK (excluding the Group’s joint venture in Germany). The Group also increased its long term store target for the UK to 1,600 stores, reflecting its successful strategy of splitting territories to improve efficiency and service to customers." |
"There's no shortage of real good quality pizza joints over there"
Could be but I don't believe that Domino's business model works on having the best tasting pizza in town, if that were the case companies like McDonald's wouldn't be selling that many burgers.
From their initial plan they were looking at 100 stores in Sweden, I wonder what the revised number is. |
Peel Hunt downgrades 'buy' to 'add' |
I wonder if a hard brexit will boost the sales here, with a reduced restaurant footfall and more opting for takeaways? |
Decent day with 20 week golden cross of 50 week EMA, and what looks like a bounce off descending triangle support and 200 day EMA. Follow through tomorrow and Wednesday would be good confirmation, with a crack at 280 thereafter. |
Anyone know why they haven't opened in Stockholm yet? Would make a lot of sense to boost international sales and establishing their presence in Sweden. |
Competition is good apparently? Lets see how the 2 month trial goes.
I asked my niece why Dominos - it tastes better than the others. |
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