Domino's Pizza Share Discussion Threads

[aa29] 01/3/2015 14:25

Results presentation can be viewed from here

[philanderer] 01/3/2015 09:31

MIDAS SHARE TIPS UPDATE: Domino's Pizza has all the right ingredients

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[philanderer] 27/2/2015 08:57

Beaufort Securities 'buy'

Barclays retains ' equal weight' increases target from 552p to 760p

[philanderer] 26/2/2015 09:19

Numis are upgrading....

Underlying PBT rose 15% to £54.8m (vs £54.2m; consensus £54.3m), with UK LFLsales up 11.3% (volume 10.4%; price 0.9%), and franchise profitability up 26%.Given this, record sales from new sites and UK LFL sales being up 9.5% (vs 13.8% comp) over the last eight weeks, we expect the pace of expansion to accelerate by 32% in 2015E. Reflecting strong growth prospects and the P/E being in line with the historic average, we are moving our recommendation to Buy from Add


Cenkos is sticking with its "sell" advice



DOMINO'S PIZZA (DOM LN, 693p, £1.1bn, Sell) has announced FY results in-line with market expectations reporting £54.8m PBT compared to consensus estimates of £54.5m. The group opened 40 UK stores and LFls increased 11.3% and total sales 16.0%. This performance implies Q4 LFLs increased 9.8%. In Germany losses of £7.3m (in line with expectations) reflect LFLs declining 4.9% and the group closed 4 stores but opened 3 which are performing well. The group has decided not to renew its option to acquire the Master Franchise Agreement for Austria. The group has increased the final divi 10.1% to bring FY to divi to 17.5p, a touch ahead of our forecast.

Current trading is relatively robust with LFLs up 9.5%, 4.8%, 0.1% and 7.7% in UK, Ireland, Germany and Switzerland respectively (in local currency). The process for finding a new CFO is well advanced. The stock trades on a 2015E adj EV/EBITDAR of 14.8x and a P/E of 22.7x whilst yielding 2.9%. Germany remains problematic and the UK is under pressure from an increasing number of new entrants (Burger King, McDonalds, Ubereats) as well as the increasing shadow of Just Eat (not rated). None of this is accurately captured in the valuation and we await a new CFO with interest, Sell.

[philanderer] 26/2/2015 09:11

Cracking set of numbers ... dividend + 10.1% to 9.69p :-D

[bigdazzler] 07/2/2015 12:03

This looks good for a nice decline.

Short term would be nice if it had another attempt to break past the 700p resistance on weakened indicators and then start to fail and have a serious longer term decline.

[philanderer] 21/1/2015 20:09

Telegraph:

Domino’s Pizza was knocked 22p to 676½p by the unexpected resignation of finance chief Sean Wilkins, who had only been in the role since last April. Mr Wilkins, who has left with immediate effect, was hired by Domino’s former chief executive, Lance Batchelor, who departed in March.

New boss David Wild now has the opportunity to fill the role with his own choice of finance chief.
“Sean was appointed by the previous CEO and our reading of the situation is that the move is down to chemistry,” said Nick Batram of Peel Hunt.

[philanderer] 21/1/2015 13:29

Domino's Pizza: Numis downgrades from 'buy' to 'add' with a target price of 780p.

[huttonr] 21/1/2015 09:02

Looks like dissesion in the ranks - I was concerned on the lack of a trading statement on Jan 9 - I assume the FD didn't come up to scratch?

[philanderer] 16/1/2015 09:36

Berenberg reiterating 'buy' and 770p target

[dontsweatit] 15/1/2015 18:47

Out with 33% profit, will see if it breaks, may be back

[philanderer] 15/1/2015 10:10

Credit Suisse downgrades to neutral , raises tp from 650p to 695p

[huttonr] 09/1/2015 08:56

I was expecting a trading statement today followingthe practice of the last few years - perhaps on Monday?

[philanderer] 05/1/2015 10:52

Numis reiterating 'buy' and 710p target

[snadgey] 06/12/2014 22:09

Thanks for clarifying. Was not quite sure which company was being referred to. Would be interesting to company the 2 companies..

[robinnicolson] 06/12/2014 20:45

Yes, Terry Smith is a fan of Domino's Pizza. However Fundsmith are invested in DPZ, not DOM.

[snadgey] 06/12/2014 20:27

Thanks for the comments. The fundamentals are good, but just think the price is getting beyond the unless, as you say, something changes - either they start to crack the Germany market or they give up and concentrate on home ground. Noticed they are liked by Fundsmith.

[robinnicolson] 06/12/2014 19:45

Channel 4 have commissioned a documentary on Domino's Pizza:

hxxp://www.radiotimes.com/news/2014-12-05/channel-4-orders-tasty-looking-dominos-pizza-documentary

[gj2] 06/12/2014 18:03

Having held these for some time, I note that they have always been expensive (e.g. P/E ratio, Price/Sales), with growth just about to slow, but cashflow great ... and then .. 13 years later (and still holding) ... exactly the same.

In a small way, I hope that the recent price rise (nearly £1.00 in just over a month)is on rumours of an exit from Germany, which can hardly be described as their best move. If they restrict themselves to their previous territory and top out at 1200 U.K./R.O.I stores, the cashflow would be phenominal.

I am happy to hold this company having seen the business model survive multiple assaults from competitors, consumer recessions etc.

The momentum works in both directions - incredibly stong recently. Short term - who knows, but probably the reverse.

Good Luck

[snadgey] 05/12/2014 21:15

What valuation metric are these guys using? Bought some of these for the kids to make up for the amount of pizza they eat. Looked to sell out at around £6.50 but have held on and followed the momentum. price ahead of fundamentals imo. What do others think?

[philanderer] 05/12/2014 11:10

Canaccord initiates coverage with 'buy' and 750p target

[philanderer] 06/11/2014 09:29

Berenberg initiates coverage with 'buy' and tp 770p

[philanderer] 23/10/2014 12:43

It`s taken 12 months but just touched 600p again.