Domino's Pizza Share Discussion Threads

[m1das_touch] 28/2/2014 12:22

Where are they advising "sell" anywhere in that article? There's a vast difference between saying a share is "fully valued" and a sell tip.

I think it's a pretty balanced article, bringing out both the positives and negatives. And as they make clear the house broker is considering that "forecast upgrades" might occur later this year. UK & Ireland is doing really well, Germany is in the process of being sorted and will take time to become profitable.

If anything I'd say this is a "hold" or "high enough" tip.

If any serious investors / long-term holders haven't yet watched the full year results webcast, I would recommend it:

hXXp://streamstudio.world-television.com/CCUIv3/frameset.aspx?ticket=856-1119-13986&target=en-default-&status=ondemand&browser=ns-0-0-0-12-0&stream=flash-video-300

[pabloiom] 28/2/2014 12:10

sell tip just out, does not read well

www.shareprophets.advfn.com/views/4210/domino-s-pizza-group-suffering-a-german-drag-looks-full-valued

[philanderer] 27/2/2014 13:27

27th feb Numis add tp 710p
27th feb N+1 Singer hold tp 480p
27th feb Panmure buy tp 665p

[undervaluedassets] 27/2/2014 09:34

growth via online and mobile looks stellar too.

[undervaluedassets] 27/2/2014 08:05

Well that is not ex-growth is it...

Very respectable

And the world cup to come

[m1das_touch] 22/2/2014 14:13

Sven - in brief, the main reasons for the fall: -

1. Fear that Dominos is now "ex-growth"

2. Resignation of Chief Executive

3. Concerns that German start-up costs will continue to weigh on profitability

The last trading update reported an above expectations forecast for UK & Ireland, and below expectations for Germany, resulting in overall "in-line" expectations.

Re Pizza availability, standard Dominos opening hours are usually from around 10.00 a.m. to 3.00 a.m., sometimes later at weekends, but this can vary according to store location. Dominos will definitely be fully geared up for the World Cup though, as major sporting events are seen as opportunities for increased profits...so wouldn't be surprised to see a strong marketing push and flexibility on ordering hours if needed.

[sven2006] 22/2/2014 14:03

Chaps, why did the share price fall, was it the Germany fiasco ?

Looking to buy in here especially with World Cup coming up. Talking of which can you order pizza at ridiculous times of the day to coincide with some of the matches?

Sven

[m1das_touch] 18/2/2014 11:13

Pre-results surge too I think - often happens with DOM. Have taken out a Spreadbet in addition to my core SIPP holding. Both showing a healthy profit.

[bigboots] 18/2/2014 09:54

Good volume this morning, talk again of PE interest

[undervaluedassets] 13/2/2014 08:41

world cup year

pizza and footy.

[m1das_touch] 11/2/2014 07:27

Yes, I would say so. I have a small holding in DPP - but consider this to be much more risky, speculative even at this stage. We know the Dominos business model works, but management in Poland have yet to prove they can implement it effectively and profitably (not least because of 'emerging market' currency risk). They have now at least started opening franchise stores, which is where the profits will come from.

In my view profits in DP Poland are still 3-4 years away and I wouldn't be surprised if the company has to return to the market for more cash at some stage (not for some time probably - but will be interested to see the cash-burn in next results).

[boros10] 10/2/2014 22:28

m1das TouchThank you for your comments. So following your argument it is the weaker franchisees who run the greatest risk of losing a MFA. DP Poland appears to have opened fewer stores and its management holds less equity than was required under its MFA .

[m1das_touch] 10/2/2014 18:55

Boros10, I understand your concerns re the MFA, but I certainly don't share them.

Yes you could argue that, legally-speaking, Dominos Inc are 'in the driving seat', and you have to discount the risk (miniscule in my view) that the MFA wouldn't be extended. But ask yourself why on earth would they not want to extend the MFA when Dominos Group Plc growth has been so exceptional? Not to mention that the UK & Ireland consistently have some of the best performing Dominos stores in the world.

In my view it would be utter foolishness to pull the plug on the Master Franchise; Dominos Group has all the infrastructure, logistics, systems, franchisees, staff etc. etc. in place. And remember we're talking about hundreds of nationwide stores, not some second-rate regional franchise.

The company continues to generate plenty of cash profits, and the high operational gearing in the business model means that once Germany starts to perform and franchise growth kicks in, profits will rise strong and fast.

This is one of my 'sleep easy at night' shares.

[turnerpa51] 10/2/2014 10:26

I'm back in hoping for div of 8.5 p per share which will give me a div of GBP 170.00

[boros10] 10/2/2014 09:25

Midas TouchMidas you are right to focus on the cash generation and capital efficiency of the Company's operations. Given these characteristics, the continuing like for like growth in the UK and the opportunities in Germany and elsewhere in Europe, the Company's shares which trade on a PER of around 20x still seem reasonable value. However, how can a PER of 20x be justified when the Master Franchise Agreement ("MFA") with DPI in the UK has a finite period left to run? I presume these agreements can be extended or new agreements entered into but it seems to me that DPI will always be in the driving seat in any negotiations. For instance if DPI wished to buy the UK business it could do so cheaply by threatening not to extend or renew the MFA or raising the royalty rate to much higher levels.I am new to the Company and have yet to do extensive research so I may be making a mountain out of a molehill. I'd value your thoughts on this point.

[shammytime] 06/2/2014 10:05

Looks like we are heading for a very quick return to 600p

[botbot] 02/2/2014 11:46

Which paper?

[bigboots] 01/2/2014 17:27

Talk of PE making a knockout bid for DOM, in many of the newspapers today.

[robinnicolson] 31/1/2014 12:28

Apparently the market also likes the appointment of David Wild as part time CEO. Looking at his c.v. he has had experience running operations for Tesco and Walmart in Germany and central Europe.

[philanderer] 31/1/2014 09:33

yep, it`s a good `un ... up from 'neutral' as well

[bigboots] 31/1/2014 07:32

That's a big upgrade

31 Jan 2014 Domino's Pizza UK... DOM Credit Suisse Outperform 514.00 514.00 - 620.00 Upgrades

[nightowl1] 24/1/2014 10:41

time to dip my toe back in!

[philanderer] 24/1/2014 09:01

Citigroup retains 'buy' , target cut from 675p to 635p

[bigboots] 24/1/2014 08:06

nice upgrade to buy from CITI today - 635 pt