How's that prediction going down for her? |
'Jefferies warns on long-term Domino’s issues'
Domino’s (DOM) is benefiting from short-term government support but Jefferies is concerned about the long-term challenges.
Analyst Becky Lane retained her ‘underperform’ recommendation and target price of 205p on the shares, which rose 2.1% to 331.8p yesterday.
The pizza takeaway chain announced ‘robust’ like-for-like sales in the first half of the year and Covid-19-related costs are set to reduce in the second half.
‘In the short term, Domino’s and government support have helped support franchisees,’ he said. ‘But we think that, longer term, rebuilding franchisee relationships will take time, with ongoing challenges to franchisee profitability.’
He added that despite the sale of its Norway arm the international part of the business ‘continues to materially drag’ |
Nice Update overall |
Yes fraz - mixed bag got a mixed reception but overall I am reasonably satisfied.
Suet |
Not sure - mixed bag of numbers. UK/Ireland (ongoing ops) good - specifics of this were already flagged. Covid related costs to fall in the second half and EBIT would be strongly up if it were not for those. International ops usual disaster not helped by Covid. Debt down but only due to lack of dividend payments in the period and lower Capex. Previous final to be paid. Nothing on current trading other than ‘encouraging’ |
Was the market expecting better half year numbers?
Suet |
Deferred FY19 dividend of 5.56p to be paid on 19th September.
Next dividend for FY20 to be reviewed in March 2021 with the preliminary results.
Suet |
Trading statement tomorrow I believe. |
Interesting RNS holding update - the supportive buying on the AGM trading update day, was the NED. |
Domino's Pizza, down 3.6%. Berenberg cut the pizza chain to Sell from Hold. |
Thanks at least they have caught up and now have vegan pizza |
@Izztre
Yes, I think it is about what the markets were expecting and that was thinking sales are up so profits will be up especially with not as much disruption compared to others in the sector.
Domino's sales could also slow now that other fast food chains have reopened. |
Good price to take a position.... |
usual advice.. :-)
Liberum reiterates 'sell'
Peel Hunt reiterates 'buy' |
Is today's reaction to the update overdone?I would say a slight fall in profits is not too bad in the current climate. However I guess it is all about what the market was expecting |
Peel Hunt 'buy', new tp 375p ....up from 350p |
Thanks for your post Robinnicolson.
I missed that update.
I now know how I will vote on all the resolutions.
AGAINST.
This is abysmal treatment of the long suffering shareholders of Dominoes.
I for one would like to see the directors take a large pay cut, as they seem to think its OK for the shareholders forfeit the dividend.
Santos123 |
From the Covid-19 update on 27 March:
The Board has already overseen actions taken on costs and capital spending and continues to carefully assess all remaining essential spending in order to protect our liquidity. Although our performance and liquidity position remain strong, given the volatility of delivery sales and with an uncertain outlook, we are taking a cautious and prudent approach and therefore the Board has decided to suspend the final dividend payment of 5.56p that was announced as part of our full year results on 5 March 2020. The Board will keep this matter under review in the coming months. |
I have just received the voting forms for the this years A.G.M.
There is NO resolution regarding paying of a dividend.
I have tried phoning Dominoes, but they will not answer the call.
Does anybody here know anything about this years dividend?
Santos123. |
Looks like 2 good board appointments.
Suet |
Nice move up today with strong afternoon volume in a falling market. Seen stories in local media about stores tripling usual sales on Friday and closing early after selling out of food. Will perform well during lockdown and hoover up takeaway market share but remains to be seen whether these extra sales will be sticky. |
I was slightly concerned about the future of this share. And thought the banks and insurance companies would be ok. After today I'd better buy some more dom quick!
Suet |
Domino's: Canaccord upgrades to buy with a target price of 320p. |
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