Domino's Pizza Share Discussion Threads

[tedrux] 29/6/2017 10:26

Apols for joking around. What I'm trying to say with DOM is it's about the strength of the brand that has been very well put together on their digital tech. I also invest in Just Eat which is all about convenience. Offers via just eat have their brand removed as its about the just eat brand. This means offers can never charge a premium. I've sold my JE now. Dominoes has very good brand awareness. It shows in the digital tech. If they can continue to stay ahead they can stand alone with their own digital offering.

[tedrux] 29/6/2017 10:18

I think it's the smiley face on the pizza tracker that makes the difference!The digital tech is excellent.

[philanderer] 29/6/2017 09:55

Agree with that , the average sale price being roughly 30% below the headline price.

Return on capital is nearly 40 per cent, far above the single-digit return for Just Eat

[trytotakeiteasy] 29/6/2017 09:12

My understanding is that most people with Domino's buy through offers. So the headline prices aren't representative. DOM offers a consistent product and the delivery is excellent. Just Eat goes with smaller and lower quality stores.

Look at a Domino's Pizza presentation. They have higher customer satisfaction ratings.

[philbrown29] 28/6/2017 21:22

Would be interested Andrew and others in the group to have your views on the single biggest negative I get thrown at me from fellow inevstors regarding DOM, which is "why would I pay £15-20 for a pizza when the Justeat app gives me greater choice at a better price from one touch point?"

I agree with you Andrew people will always want pizza but technology and service is rapidly catching up with DOM and whilst expansion opportunities do exist overseas, my biggest concern is the rapidly changing landscape in DOM's biggest market, which is at home and we are seeing the first signs of this hitting profitability due to ever deeper deals and an increasing lack of loyalty.

I hold a significant position in DOM as a % of my portfolio and i agree the fundamentals have for a long time been top notch but a few alarm bells ringing recently so would appreciate your views...

Thoughts on a postcard ;)

[philanderer] 28/6/2017 20:58

Domino's is launching a CHOCOLATE pizza and this is how you can claim a £15 free spend to try it

[andrewbaker] 28/6/2017 10:48

After many years of investing, and having tried probably every different method, from day trading to long term holding with shorting and gearing included, I now look to buy and hold (nearly) forever. And, based on the last period compared to the many years before, this is a very worthwhile method - if you get it right, lol - without the stress. I still use charts, which help with buy and sell timing, as well as fundamental data, and devour news articles, with the object now being a portfolio of businesses that will prosper over many years to come. My point? Domino Pizza is a very well run business, expanding into new and profitable areas, and despite competition, will do well well into the future. Also, and this matters, people like their pizzas, like the convenience of ordering, and like the reliable delivery to wherever they are. Just look around: Dominos are popular; and that matters. In short, they are a buy now and just about any time the price drops. They are a long term hold for me, for sure.

[philanderer] 27/6/2017 08:37

So 290p it is ;-)

[philanderer] 26/6/2017 21:28

According to Peel Hunt, the stock has hit its lowest rating to earnings for 13 years even though Domino’s franchisees are now generating £164,000 of operating earnings per store, up from £102,000 three years ago.

First-half sales growth will be weak but measures are already in place to drive a second-half rebound, while cash flow generation remains strong enough that as much as £1.1bn could be returned to shareholders over the next eight years, it forecast.

[philanderer] 26/6/2017 17:02

Better day today anyway :-)

[panic investor] 26/6/2017 16:27

Black swan events do occur, charts can help you on exit and entry positions though. Charts come into their own on forex on no news days - self for filling and all that especially using fibs.With stocks support and resistance levels definitely work as well

[philanderer] 26/6/2017 16:11

Indeed dahhad. I can`t really think of any sure fire way of forecasting ;-)

[dahhad] 26/6/2017 15:09

Sorry to show my ignorance about charts but surely charts are very unreliable in forecasting share price movements when you have the sort of events that PFC has had, or indeed is having?

[philanderer] 26/6/2017 11:16

I`d have said 290p but I wouldn't argue with panic investor . He's more savvy with the charts than me :-)

[panic investor] 26/6/2017 10:43

299 theres a fair few touches on the daily chart

[philbrown29] 26/6/2017 10:36

Not much reaction yet to these reiterations, What do you have as next resistance level phil?

[philanderer] 26/6/2017 10:28

And house broker Numis just out reiterating their 'buy' and 510p target.

[philanderer] 26/6/2017 08:59

Peel Hunt reiterating their 'buy' and 400p target price this morning.

[philanderer] 23/6/2017 17:06

For all that faffing about with my portfolio I may as well have bought a FTSE250 tracker. For the first 6 months of the year I`m +9.2% which barely beats the INDEX.

Good weekend everyone.

[robinnicolson] 23/6/2017 15:09

Current broker consensus forecast for 2018: 16.6p

If that comes down approximately 10% and you very pessimistically apply a P/E ratio of 15 to DOM (during 2008 economic crisis), you arrive at a share price of 225p.

Always useful to be mentally reminded/prepared for the potential downside!

On the bright side, as the market always looks 6 months+ ahead, at some stage later this year, Mr Market should begin factoring in DOM's additional revenue generated from England's participation in the 2018 World Cup...(maybe clutching at straws there!)

(Long DOM since 2006).

[philbrown29] 23/6/2017 14:47

Unfortunately I don't think this is the end of the movement for DOM. A lot of hedge funds moving money to safer less domestically focused equities over the coming weeks and months and all of this negative sentiment is now building up its momentum into the earnings release next month, which will be reporting on a much more challenging LFL period for DOM. I'm anticipating a small surge over the coming weeks back above 300 simply due to the speed of this decline and the fact a lot of insiders who jumped on the short train will have exited but given the damage this week has caused to investor sentiment and the fact prior to the investec rating it was still struggling to break key resistance at 335 for 2 months following a hefty fall on the last results I have personally scaled back my target to a 310 exit. Unfortunately rapid destruction of a share price like what we have seen this week simply from broker ratings is far from a sign of long term strength. Hope I'm proven wrong!

[philanderer] 23/6/2017 14:05

Yep, got it thanks :-)

[panic investor] 23/6/2017 13:58

Yes around that area, look back on the weekly/daily chart - loads of touches in the past indicating a strong area of support.