Domino's Pizza Share Discussion Threads

[philanderer] 13/3/2017 09:13

Downgraded by Citigroup this morning to 'neutral'

Almost 1.5m traded already


Investors lose the taste for Domino's shares after Citi downgrade

(ShareCast News) - Citigroup has downgraded its stance on Domino's Pizza to 'neutral' from 'buy' and cut the price target to 350p from 480p as it pointed to premium multiples and slowing like-for-like sales.
It noted the shares fell 12% on the back of the FY2016 results, mostly related to a sharp slowdown within the company's core UK business for the first nine weeks of 2017.

Citi said the slowdown reflects tough comparatives, market softness and competitive pressure, with UK LFL up 1.5% for the first nine weeks of the year, marking the slowest rate of growth since 2004.

The bank expects the rest of the first half of 2017 to be equally challenging, with the group lapping more than 10% LFL sales growth achieved in 1H16.

"Further volume headwinds exist in 2H17e as pricing may be used to offset creeping food inflation pressure. We now forecast +2.5% LFL sales growth for Domino's UK business for FY17e (from 5.0% previously). This implies a recovery in 2H17e driven by more effective promotional activity and softer comps in 2H16."

In addition, Citi pointed out that Domino's premium valuation leaves little margin for error, with the shares trading at a calendar year 2018 price-to-earnings of 21x.

At 0900 GMT, the shares were down 2.8% to 337p.

[philanderer] 12/3/2017 10:34

;-D

'An absolute legend has leaked discount codes for every Domino's store in the UK'

[philanderer] 10/3/2017 16:49

Another big volume day.... 7 million+ shares traded.

UT = 1 million @ 346.6p

[philanderer] 10/3/2017 14:34

AA, many thanks for the webcast link.

[philanderer] 10/3/2017 13:18

10th march Canaccord retains 'buy' ....tp 400p cut from 440p


updated:

10th march Canaccord buy tp 400p
9th march Numis buy tp 482p
9th march Peel Hunt hold tp 400p
9th march N+1 Singer hold tp 390p
9th march Credit Suisse outperform tp 455p

9th march ++++++ Results +++++

[aa29] 10/3/2017 11:15

Webcast of yesterday's results presentation

[philanderer] 10/3/2017 10:58

I reckon it'll take a while for the dust to settle , but even with a 10% increase in the dividend this is yielding 2.6% at this morning's shareprice. The market has judged this really on just nine weeks trading and has been very harsh imho.

[jamesjamiebarlow] 10/3/2017 10:07

Yeah I took a spread bet out on this yesterday and when I seen that the naked trader had bought some this gave me a bit of confidence that my opinion that this will most likely bounce back could be right. So have bought some for my isa this mor too.

[philanderer] 10/3/2017 09:20

Good two way pull this morning.... 2 million shares traded already today.

[philanderer] 09/3/2017 23:01

Domino’s Pizza and the move towards mobile

[philanderer] 09/3/2017 22:53

Domino's set to create 3,200 new jobs in the UK after selling a bumper 89 million pizzas

++The franchise sold nearly 89 million pizzas last year and profits rose 17%

++Domino’s hopes 80 new outlets will open next year creating around 3,000 jobs

++Another 200 jobs in Warrington for distributing ingredients could be created


Read more:

[philanderer] 09/3/2017 19:55

Analysts at Numis said the slowdown “reflects a challenging comparative figure, slower take-up of its Winter Survival deal, and stiffer competition”.

Numis said while Domino's UK performance looked “disappointing”, previous slowdowns had been “good buying opportunities”. It said the company was attractive due to the fact it was growing earnings at 10pc per annum with “excellent free cash flow generation”. It added that Domino's valuation compared well to its US-listed cousin.

[luderitz] 09/3/2017 19:15

An excellent entry point for me today, thank you kindly mm's.

[philanderer] 09/3/2017 17:51

Chief Exec:

David Wild, the Domino’s chief executive, said Pizza Hut was “very aggressive” in January and that consumers were more cautious about spending.

“Looking forward, the UK consumer environment is more difficult,” he said. “Our research tells us that customers are worried about rising prices. They’re not worried about job security but they are worried about prices.

Wild added that consumer “have seen things like petrol rise in price, they’re reading in the newspaper that food and energy prices are going up, and they’re factoring that into spending.”

He said that Domino’s could gain from that because it “sits neatly in the middle” and could gain from customers opting for a takeaway rather than eating out. “This is a more value-conscious environment,” he added.

Wild played down the large share price fall, saying shares had performed well over the past two weeks. “Share prices go up and down,” he said. “I think we’ve got to be careful about getting carried away by a very short period, just nine weeks.”

[tsmith2] 09/3/2017 14:15

340..above that a whoosh, me thinks. Some going on here

[robinnicolson] 09/3/2017 13:13

The company was willing to buy back stock at 381.6p as recently as 21 February.

[philanderer] 09/3/2017 13:08

On an unchanged 8p dividend the yield would be 2.42% with a shareprice of 330p

[tsmith2] 09/3/2017 13:08

Skates on time

[tsmith2] 09/3/2017 12:48

What's the yield?

[hjs] 09/3/2017 12:45

imo, the share price drop is an overreaction and should recover by close of business today. DOM will increase growth by concentrating overseas....Local market is very "consumer sensitive".

[steeplejack] 09/3/2017 12:43

2.4% yield at 330p,roughly the same as US treasury bills!(I note that ADVFN haven't adjusted for the three to one split)

[salpara111] 09/3/2017 12:27

Pays a very healthy divi at current share price which more than makes up for moderating growth.

[philanderer] 09/3/2017 12:23

Plenty of broker comment here:




9th march Credit Suisse outperform tp 455p

[tsmith2] 09/3/2017 12:06

Intra day chart looking promising