Domino's Pizza Share Discussion Threads

[blueflex2] 06/10/2017 23:15

Anyone know has the buyback stopped? If not how much left to complete it?

[philanderer] 06/10/2017 13:15

RNS:

On 11 August 2017, Domino's Pizza Group plc ("DPG"), announced that it had entered into an agreement to form a partnership with its largest franchisee in London. As part of the transaction DPG agreed to pay £24 million to acquire a 75% stake in a newly formed company whose assets consist of all the franchisee's operations being 25 existing Domino's stores in London. DPG today announces that this transaction has now completed.

[philanderer] 05/10/2017 10:26

Domino’s up 15% but more to go, says Peel Hunt


Domino’s (DOM) share price has surged over the last two weeks as stock has been bought back but Peel Hunt said there is further to go if the takeaway pizza chain can grow like-for-like sales more quickly.

Analyst Douglas Jack retained his ‘buy’ recommendation and target price of 400p on the stock as the company undertook a 1.5 million share buyback over the last two weeks. The shares were flat at 306.9p yesterday.

‘What we said before still remains intact; if like-for-like sales start to accelerate and the buyback has to compete with short covering on the equivalent of 15% of the equity base, then the upward squeeze on the share price could be considerable.’

Jack has confidence that third quarter sales will increase as Domino’s will have benefited from poor weather and soft comparators but said ‘the self-help initiatives of new innovation, pricing and advertising only started towards the end of the quarter, benefiting the fourth quarter of 2017 and the first half of 2018 more than the third quarter of 2017’.

[philanderer] 04/10/2017 23:58

blueflex , here's the updated list:


4th oct Peel Hunt buy tp 400p
4th oct Numis buy tp 392p
30th aug Liberum sell tp 250p
11th aug Credit Suisse outperfom tp 365p
2nd aug Berenberg hold tp 290p
1st aug Investec sell tp 242p
26th july Barclays equal weight tp 280p
25th july Canaccord buy tp 400p


25th july +++++ Half Year results +++++

[blueflex2] 04/10/2017 15:06

@philanderer? there was a broker didn't rate this share high. Is it Investec?

[philanderer] 04/10/2017 08:54

4th oct Peel Hunt buy tp 400p
4th oct Numis buy tp 392p

reiterations

[trytotakeiteasy] 02/10/2017 17:32

huffster - so short interest about 8.5%. That is fairly high. Buying back 1.5% of the shares may make them uncomfortable but it isn't really a key driver. The crux is how sales perform going forward. I can see the bear case for Domino's - Uber Eats, Deliveroo etc - but this is still the leader in pizza delivery in the UK. The international business should be profitable in 2018. If Domino's can keep buying shares back then the shorters should as some stage get uncomfortable.

[dahhad] 30/9/2017 15:46

Don't fully understand how it works pm032017 but great to see its effect so far!! I hope it continues to at least the 330p mark

[huffster] 28/9/2017 12:34

Notifiable short interests not really closing as of yet yet according to short tracker.

[pm032017] 28/9/2017 10:44

So how does this share buy back works? So from the time company announces a buy back program, do they continuously buy shares on hour on hour basis daily till the buy back deadline or they buy them intermittently? What are the market rules regarding this? Do they have to follow a particular pattern or thy can do what they want?

[philanderer] 28/9/2017 08:53

Just turning into a battle between the shorters and company buy backs

[philanderer] 26/9/2017 07:07

Domino’s brands itself 'The Official Food of Everything’ in bid to usurp the Sunday roast and fine dining

[steve73] 26/9/2017 03:51

This share buy-back is proving to be a stroke of genius...

On 19th Sep before any share buying commenced, the share price was around 270, giving a M-Cap of around 1.33 BN GBP.

At CoB yesterday, the co had purchased a total of 159,209 shares at an average price of 291.65, costing around 464k... The current m-cap is now around 1.52 BN GBP.

So an investment of less than 1/2 MM for its own shares has raised the company valuation by almost 200 MM...

Long may this continue....as there plenty more to go.

from the RNS on 20th Sep...

"The aggregate maximum consideration payable by the Company in respect of the purchase of shares under the Programme up to 19 October 2017 is GBP15 million. The maximum number of shares that may be purchased under the Programme is 49,196,705 (being the number of shares able to be purchased under the 2017 Authority), less any shares purchased to date under this authority."

[suetballs] 25/9/2017 17:08

Yep -another good day.
Suet

[philanderer] 25/9/2017 16:56

300p busted in fine style. :-)

[mattcookson] 22/9/2017 20:37

This is why DOM share price with smash the 350 mark easily over the coming days.....

Cash is king

Domino's has fat profit margins. Last year the company reported an operating profit margin of 23% and return on equity of 74%. Free cash flow per share for the year was 8.1p or around £40m. Of this free cash flow, Domino's returned £37m to investors via dividend payouts and £25m via a share buyback for a total cash return of £62m.

Today the company announced a further cash return to investors. Management has decided to initiate a new £15m buyback, alongside the current dividend yield of 3.4%.

Beating the market

Domino's has managed to grow earnings per share at a staggering 18.7% per annum for the past six years, and this growth, coupled with the company's cash returns policy, means that the shares have smashed the wider market.

At the time of its IPO in 1999, shares in Domino's were worth a split-adjusted 8.3p. Today, they're worth 287p, and the annual dividend is worth 8.8p. This means that excluding dividends, over the past 18 years the shares have returned 3,358% excluding dividends. Over the same period, the FTSE 250 has returned 260%.

I believe that as Domino's continues to grow and return cash to investors, it can repeat the performance of the past two decades. City analysts have pencilled in earnings per share growth of 5% for 2017 and based on these estimates, the shares trade at a forward earnings multiple of 18.8.

Perfect time to snap this at the current bargain price of 300.

[philanderer] 22/9/2017 11:50

Lol Steve , not guilty , I'm on the greek island of Naxos 😎

[steve73] 22/9/2017 10:15

There's no such thing as bad publicity....! Hope this wasn't you philandering?

[philanderer] 21/9/2017 14:15

Domino’s (DOM) has started its share buyback programme, which Peel Hunt has taken as a sign of the takeaway pizza chain’s confidence in trading conditions.

Analyst Douglas Jack retained his ‘buy’ recommendation and target price of 400p on the stock after the group announced it would commence a share repurchase programme of up to £15 million-worth of shares ending on 19 October.

‘In our view, the company would not do this if trading was deteriorating or if it planned to sink its capital into UK corporate stores,’ he said.

‘Domino’s share buyback programmes tend to be weighted to the first and fourth quarters. The net return to shareholders under “share issue” in the cashflow has averaged just £6 million per annum over the last 10 years, because buying back shares has not always been easy to achieve.’

However, he said that if like-for-like sales started to accelerate and ‘the buyback has to compete with short covering on the equivalent of 15% of the equity base, the upward squeeze on the share price could be considerable’.

[mattcookson] 21/9/2017 09:38

Absolutely, we will see 300 fairly soon. It's little down today as market is generally down this morning. With the share buy back plan, this will head up to 350 levels again fairly soon. Great time to snap this on the cheap right now ;).

[philanderer] 20/9/2017 20:44

Telegraph market report...

Elsewhere, investors readily took a slice of Domino’s Pizza as the delivery firm revived the City’s confidence by buying back £15m worth of shares.

The FTSE 250 firm, which has seen its shares dive over 30pc since March’s full-year results indicated slowing trading, jumped to the top of the FTSE 250, gaining 18p to 293.1p.

Sales should pick-up for Domino’s in the third quarter as it begins to feel the benefit from its “potentially game-changing” £5 per head offer and a beefed-up marketing campaign, Peel Hunt analyst Douglas Jack told clients.

He added that the buyback indicates that trading, which has been supported by poor weather, has not deteriorated over the summer or that the company plans to heavily invest in its stores with final quarter figures expected to also be boosted by new tech innovations.

[philanderer] 20/9/2017 14:07

Peel Hunt reiterating BUY. tp 400p

[blueflex2] 20/9/2017 14:06

Good buy. Will add in more.

[glenkaz] 20/9/2017 10:37

Bought in today! May get a few days rally let's see! Munch munch 🍕 Yummy 🤡✌A039;

[philanderer] 20/9/2017 08:08

A good early move. Let's see if it holds.