Domino's Pizza Share Discussion Threads

[philanderer] 18/8/2015 20:52

Wasatch Advisors, Inc over 3%

[philanderer] 03/8/2015 09:01

Berenberg downgrades to 'hold' ... target raised from 770p to 900p

[philanderer] 29/7/2015 11:40

Beaufort Securities reiterating 'buy'

[gj2] 28/7/2015 17:43

This feels like the Dominos of old (have held for 14 years). Hopefully Germany can turn profitable within 1/2 years.
Looking a page or two back through this thread, it is amusing to see Cenkos give a sell rating - not so much because the price has since risen, but their reasoning, citing new entrants such as Burger King and MacDonalds. New entrants ??

[par555] 28/7/2015 14:39

hybrasil - how's the short going ?

[philanderer] 28/7/2015 13:18

Numis reiterates 'buy' ..increases tp from 985p to 1000p

[philanderer] 28/7/2015 08:42

Impressive numbers , dividend +15%.

Quality company.

[philanderer] 27/7/2015 08:55

Citigroup 'neutral' tp 760p

reiterates

[philanderer] 24/7/2015 13:38

Results next tuesday

[philanderer] 21/7/2015 09:32

Numis reiterating 'buy' today, with 985p target.

[hybrasil] 23/6/2015 22:26

Is this a screaming short or what. Valued at 30X profits.

[philanderer] 12/6/2015 13:26

Wasatch Advisors Inc. above 3%

[treeshake] 11/6/2015 20:33

Bet they're selling loads on the back of this ch4 documentary

[philanderer] 14/4/2015 09:51

Numis reiterating 'buy' this morning.

[boilinthebag] 13/3/2015 11:24

Overweight!! Not a Buy yet still put the price target at 850p. Sounds a bit like hedging their bets.
Hard to believe this is a Pizza Delivery company with a rise like there has been.
Too much competition from smaller firms that can use various websites such as Just Eat. No real barrier to new entrants coming through as national chain eventually.
Edit - Papa John's for example. Seems to be expanding and advertising on national TV.

[philanderer] 11/3/2015 13:11

Bit more detail...

Upgrading to Overweight, Price Target raised to 850p: During 2014, Domino's improved franchisee profitability significantly, with EBITDA margins +160bps to 14%, the highest level since 2010.

With another £8m being passed onto franchisees from food price deflation in FY15, we believe franchisee margins should improve further.

This should incentivise franchisees to spend more on marketing and rollout additional sites. In turn, we would expect faster LFL and total system sales growth, leaving more room for marketing (by both PLC and franchisees) and investment in the e-commerce offering, widening the company's competitive advantage vs peers.

Although DOM trades on a premium rating of 24x, we think that this ignores: i) £4.5m of German/Swiss losses in FY15E, which are unlikely to continue in perpetuity, and ii) the company sacrificing PLC profits to help ensure franchisees are incentivised, boosting medium term growth.

Stripping out these factors, we calculate FY15 EPS would be 20% higher and the PE rating would fall to 20x. Finally, although the PE rating is modestly above its 10 year average, the PE Rel is at a small discount to its average. With impressive LFL sales growth, 50% upside potential to the UK store count, c80% ROCE, and a market leading e-commerce offering, we believe that Domino's shares deserve a premium rating.

We upgrade our rating to Overweight and raise our Price Target to 850p.

[robinnicolson] 11/3/2015 10:50

Think I've discovered the reason for the price rise...a broker upgrade:

Barclays raises to overweight from equal weight and raises price target to 850p from 760p.

"With franchisee profits moving higher and 80% return on capital employed, the investment case is very attractive, in our view", said Richard Taylor.

[huttonr] 11/3/2015 09:20

I had wondered about the same thing - surely not??

[robinnicolson] 11/3/2015 09:12

Domino's Pizza currently up nearly 7% an hour after the opening... Punters do know that it is actually Domino Printing Sciences that received the cash offer this morning don't they...?

[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

Read more:

[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.