Domino's Pizza Share Discussion Threads

[philanderer] 02/3/2012 08:19

2nd march Goldman Sachs Conviction buy TP 625p (from 575p)

[philanderer] 01/3/2012 11:48

2m increase by Massachusetts Financial Services Company

[philanderer] 27/2/2012 23:08

Domino's Pizza cheapened 3.3p to 446.3p after Liberum Capital downgraded to sell and slashed its target price to 394p from 464p. The broker believes the market has not fully priced in the risks to the investment case. PLC profitability is at odds with franchisee margin declines, it said.

Read more:

[philanderer] 20/2/2012 11:31

Morning robin... xd wednesday.

[robinnicolson] 17/2/2012 17:31

Moneyweek article:

[philanderer] 17/2/2012 11:12

Some big sells going through this morning.

[philanderer] 17/2/2012 08:43

Ireland....


Domino's back on track with sales boost

Struggling Domino's Pizza stores in Ireland appear to have turned a corner, with a dramatic three-year sales slide having been stemmed in the first few weeks of 2012.

Releasing full-year results for 2011, the UK-listed company that controls the brand here said that like-for-like sales in Ireland rose 2.3pc in the first seven weeks of this year. They had fallen 8.4pc in 2010 as consumers cut spending in the face of the downturn.

Domino's Pizza UK & Ireland chief executive Lance Batchelor said that while the economic backdrop remained challenging in its main markets, the sales uptick in Ireland so far this year was encouraging.

"I am encouraged to see a gradual slowdown in the decline, although we are now up against some easier comparative figures," he added.

Overall, the group reported a 12pc rise in revenue to £210m (€251.7m) for 2011, while pre-tax profits were up 10pc at £38.8m (€46.5m). Total sales across the store network rose over 9pc to £530.6m (€637.1m). Online sales surged.

Sales last year in Ireland fell 4.1pc -- more than half the rate of decline experienced by the chain in 2010. But despite the fall in sales, Domino's said that Ireland still boasted outlets with the highest average weekly sales for the pizza chain's stores outside the United States. An outlet in Tallaght, Dublin, has consistently been rumoured to be among the busiest in the world.

Domino's had even been forced to provide financial assistance to some franchises here in 2010, but didn't give any handouts last year.

Mr Batchelor said that the company's sponsorship of TV shows such as 'X-Factor', 'I'm a Celebrity' and 'Dancing on Ice', helped to cement brand awareness here. New products, such as a speciality pizza range that was promoted by Irish celebrity chef Andrew Rudd, also enabled it to outperform its competition, added Mr Batchelor.

One Irish store, in Portlaoise, was closed during the year. It had been opened with the intention that it could serve a new housing estate that was to be built but which never materialised.

"The development was cancelled due to the Irish economic situation, leaving the store in something of a ghost town," said Mr Batchelor.

The chain opened one outlet here last year

[philanderer] 16/2/2012 22:35

Yorkshire Post:

Pledge to create more jobs as Domino's effect gathers pace

Thursday 16 February 2012

Domino`s Pizza has pledged to create 1,800 jobs in 2012, including around 200 in Yorkshire, by growing its number of stores across the UK.

Domino's, which already has 36 stores in Yorkshire and North Lincolnshire, plans to open another six stores in the region this year.

A spokesman confirmed that one of the new stores will be in Hull Road in York.

Georgina Wald, the head of corporate communications at Domino's Pizza, said the company had enjoyed a "bumper night" on Valentine's Day.

She said the company had benefited from the fact that many Britons had invested in their 'home environment', which included spending cash on larger televisions.

"Our main customers are families, because pizzas are for sharing,'' she added. "Domino's is a treat. We're not a daily meal replacement. Every new store creates around 30 jobs."

She said Domino's wanted England to do well in the European football championships this summer, because the team's success would probably lead to higher pizza sales.

[philanderer] 16/2/2012 11:24

'Valentines boost Domino pizza sales'

[philanderer] 16/2/2012 08:47

Questor share tip: Domino's long-term prospects look bright

The menu at Domino's Pizza looked rather attractive to Questor in April 2011, the last occasion we decided to join the hard-pressed masses cutting back on restaurant bills and dining in.

By Nathalie Thomas

16 Feb 2012

Domino's Pizza
490p +12½p

Questor says Hold

[philanderer] 16/2/2012 08:37

Daily Express

Football fans could soon be swapping their half-time pies for pizza after Domino's said opening stores in sport stadiums could drive further profit growth.

The company, with 726 stores, said it was talking to stadium owners about opening trial stores later this year. It is trialing an outlet in a Tesco superstore and a shopping centre.

"We want to be where customers are when they are hungry," said chief executive Lance Batchelor. "Some of these trials will work and some won't but we will continue to investigate new formats."

He was speaking as Domino's reported a 14.6 per cent profit rise to £43.6million in the year to December 25 on sales up 9.3 per cent to £530.6million. Same store sales rose 3 per cent, down on 11.9 per cent growth last year. Its shares rose 12½p to 490p.

Some of these trials will work and some won't but we will continue to investigate new formats.

Chief executive Lance Batchelor Domino's said online sales, particularly over smartphones, now accounted for about a half of all sales. "We are turning into a digital company," Batchelor said. "There are less mistakes made and more side orders chosen."

New ranges such as Gourmet pizzas sold well particularly with "Pizza Express" style diners.

It had a record Valentine's Day as couples staying in with a pizza and a Chocolate Melt lifted sales by 48 per cent.

[philanderer] 15/2/2012 22:50

IC View:

Domino's Pizza continues to expand the number of outlets with minimal cost and, with more customers looking to eat at home, the future look bright. However, the yield is nothing special and a punchy forward PE ratio of 23 leaves those prospects looking factored-in.

Hold.

[philanderer] 15/2/2012 16:54

UT = 102k @ 490p

[philanderer] 15/2/2012 13:09

Numis reiterating 'buy' target = 600p.

------------------------------------

Panmure going along the 'expensive' line...


Panmure analysts Simon French and Lindsey Kerrigan wrote in a note:

The stock trades on a 2012 price-earnings ratio of 22.8 times and an EV/EBITDA of 14.8 times, supported by a 2.9% yield. For a stock that we forecast to grow earnings 11% in 2012, we view this as too expensive. We reiterate our Sell recommendation and 350p target price, implying 27% downside potential.

[mj19] 15/2/2012 10:34

Domino's Pizza's dough not rising fast enough

Date: Wednesday 15 Feb 2012
Domino's Pizza's dough not rising fast enough

Profits from pizza delivery firm Domino's Pizza were marginally ahead of market expectations despite its new German operations taking a slice from the pie.

Profit before tax for the 52 weeks to Christmas Day 2011 rose by 14.6% to £43.6m from £38.0m the year before. This figure excludes losses of £1.4m from the group's fledgling German operations; with those losses included, the profit of £42.2m was slightly ahead of market expectations of £42.1m.

Diluted earnings per share rose 14.9% to 19.24p (consensus: 18.89p) from 16.75p the year before, and the full year dividend has been hiked by 20.6% to 12.30p (consensus: 12.01p) from 2010's 10.20p.

In the Chairman's statement Stephen Hemsley makes clear that strong underlying cash generation will lead to a more aggressive policy of "returning cash". In other words, Domino's may be looking to become a dividend play.

Like-for-like sales at the company's 604 outlets which have been open for two years or more were up 3.0%, although the equivalent figure for 2010 was 11.9% (reported at the beginning of January).

Total "system" sales increased by 9.3% over 2010 to £530.6m with online sales growing by 43% to £183.1m. Online sales now account for 44.3% of all UK deliveries.

Domino's also accelerated its new store openings from 57 in 2010 to 62 in 2011, bringing the total to 726.

The other important opening for the firm was the completion of its new headquarters in Milton Keynes, which formed the bulk of capital expenditure, costing £6.6m.

Looking ahead, Lance Batchelor, Chief Executive Officer of Domino's said: "Trading has continued to be robust during the first seven weeks of 2012 with like-for-like sales for the group increasing by 3.7%...The consumer backdrop remains a tough one, but with record store openings and continuing appetite from our franchisees, we remain confident of the group's ability to drive both sales and profits going forward."

One of the the big questions for Domino's now is whether its German gamble will pay off. The firm currently has six stores in place in Europe's biggest economy and hopes to triple that number by the end of this year, with franchisees sourced both locally and amongst its ambitious UK cohort.

The other main issue is how the company can continue to boost volumes.

Broadly there are two ways: sell more pizzas from existing stores (analysts at Panmure Gordon think this is going to be tough, given increased competition from Pizza Hut) or it can open more stores.

Collins Stewart analysts argue the number of openings needs to rise to around 75 from the current level of 60; clearly Germany could provide some of this growth.

The problem for the stock is that it is expensive, trading at around 23 times forward earnings. It has earned that high rating through consistently delivering growth above market expectations, but the signs are there that it is finding it increasingly hard to meet the expectations of a demanding market.

Initially Domino's fell 2.8%; by 8.35am it had recovered slightly but was still 1.5% down on yesterday's close. Over the past 12 months the stock has fallen 3%,

[philanderer] 15/2/2012 09:01

Brokers so far..

15th feb Oriel Secs add -
15th feb Collins Stewart hold TP 460p
15th feb Liberum hold TP 464p
15th feb N+1 Brewin hold TP 481p
15th feb Peel Hunt hold TP 480p
15th feb Panmure sell TP 350p

[philanderer] 15/2/2012 08:34

Solid enough for me and Ireland showing tentative recovery as well.

[mj19] 15/2/2012 08:07

Profits from pizza delivery firm Domino's Pizza were marginally ahead of market expectations despite its German operations taking a slice from the pie. Profit before tax for the 52 weeks to Christmas Day 2011 rose by 14.6% to £43.6m from £38.0m the year before, though this figure excluded losses of £1.4m from the group's fledgling German operations; with German losses included, the profit of £42.2m was slightly ahead of market expectations of £42.1m.

[philanderer] 14/2/2012 11:44

DOMINO'S CUSTOMERS MAKE A MILLION DONATIONS TO CHARITY

14th February 2012

DOMINO'S CUSTOMERS HAVE SHOWN THAT THEY ARE ALL HEART BY ROUNDING UP THE PRICE OF THEIR ORDERS AND DONATING A MILLION PENNIES IN 'SPARE CHANGE' TO CHARITY.

Domino's Pizza joined forces with The Pennies Foundation, the creators of the micro-donation scheme Pennies, the electronic charity box, in November 2010 and since then customers have raised over £230,000 for UK charities.

[philanderer] 14/2/2012 11:33

14th february Numis 'buy' TP 600p

reiterates.

[philanderer] 14/2/2012 10:02

500k traded already on the day before the results release.

[philanderer] 13/2/2012 22:05

Domino's kicks off search for fastest pizza maker

February 13, 2012


Domino's Pizza kicks off its search for the World's Fastest Pizza Maker today, with store managers and team members from stores across the United Kingdom and Ireland battling in regional competitions throughout February.

Regional heats will take place across England, Scotland, Wales, Northern Ireland and the Republic of Ireland and the fastest will qualify to take part in the UK final, which is being held at Domino's national training center in Milton Keynes on Feb. 29.

[philanderer] 13/2/2012 12:32

And here they are as ever before results :-)

Panmure 'sell' and the usual 350p target.

[philanderer] 12/2/2012 20:33

Telegraph:

• Domino's Pizza chief executive Lance Batchelor will be grilled about the chain's plans to conquer the German market, with the City looking for a major roll-out over the next few years. Domino's dipped its toe into Germany last year when it opened four outlets but analysts believe there is opportunity to ramp up the expansion.

The group updated the markets last month on 2011 trading, with like-for-like sales up 3c on the previous year. Analysts are expecting pre-tax profit figures to be broadly in line with guidance at around £42m.
Brokers at Numis believe Domino's will outline plans to open a further 60 stores in the UK this year, adding to the 62 that opened their doors in 2011.
"Wednesday's full year results should highlight Domino's ability to generate strong earnings growth in the UK even when like-for-like sales are modest by its own high standards," they said in a note.




Domino's Pizza has built an international business resulting in profits rising year on year, currently on a likely price-to-earnings of 25, investors will be hoping for a hike in the current 2.5% dividend yield.