Domino's Pizza Share Discussion Threads

[philanderer] 10/10/2018 09:15

Connect Group . mmmmmmmm

[philanderer] 13/9/2018 10:41

Berenberg 'hold' tp 280p cut from 320p

[philanderer] 16/8/2018 11:29

Taken the 4p divi in it's stride :-)

[robinnicolson] 15/8/2018 11:43

Looking oversold and fairly decent value here IMHO. Ex-dividend tomorrow.

[whatsup32] 14/8/2018 16:58

Not sure where the growth will come from .
I called to see if I could be a Franchisee ,got an answering machine with the message ‘not taking applications’. I called to see if I could rent them my property on a prominent high st. Got through to an answering machine that had the message ‘mail box full’ . I was also interested in buying shares in the company but now have very cold feet

[philanderer] 12/8/2018 10:21

MIDAS SHARE TIPS: Don't grab a slice of pizza giant Domino's just yet as chain issues a cautious update

Midas verdict: Domino's, like so many other fast food chains, has headwinds to battle in the form of rises in food costs and the National Living Wage, and high business rates. Current investors should hold. New investors may want to find out how a scorching summer has affected sales before deciding whether to grab a slice of the action.

[aa29] 09/8/2018 12:08

Was interested to hear from the call that there are two franchisees owning 200 ish franchises IIRC so those two will have a fair amount of power already. Also that the direct purchase of London stores is allowing that area to be managed more profitably for plc.

And a brief update on new openings, at least one confirmed for h2 as one in Prestatyn has opened in past couple of weeks.

[robinnicolson] 09/8/2018 11:44

During the conference call David Wild said that it was a "natural thing" for the franchisees to have an association and he had already met them. He also said that "Domino's UK has some of the best franchisees in the world with a close connection to the brand but at the end of the day the relationship is a commercial one. There are always natural tensions and we have our ups and downs but we try and resolve any issues".

[philanderer] 09/8/2018 10:27

Citigroup retains 'neutral' tp 310p cut from 370p

[salonie] 08/8/2018 23:13

Down down down falling apart by the sounds of it.

[philanderer] 08/8/2018 12:22

'Revenge of the Domino's pizza chefs: More than £146m is wiped off the chain's value as tension grows between franchisees and the boss'


Growing tensions have emerged between franchise workers and CEO David Wild

Three finance directors have also left under Wild's tenure

Franchisees say they are under pressure to open more outlets in existing spots

[montynj] 07/8/2018 16:09

m.youtube.com/watch?v=E_tympuVKSYCheck out Bigdish plc recently listed on the main market of the LSE..looks v exciting

[robinnicolson] 07/8/2018 14:09

And finally Barclays:

"Hl results are mixed. UK profits are solid enough, International losses have deepened, and the new UK openings target has been cut to 60 sites. Underlying PBT was +2.5% to £45.7m, EPS was +6.8% to 7.8p, and DPS +8% to 4.05p. Net Debt increased to £182m (£148m at Dec-l7). Within this, UK and Ireland profits were +8.1% but International losses widened from £O.3m in H117 to £l.8m in Hl 18. There were £4m of "non-underlying" items, including £l.9m on UK supply chain transformation, £2.1m relating to the conversion of the Norway acquisition. LFL sales growth in Hl has moved to 5.9%, with 02 LFLs slowing to 4.7% reflecting 'the prolonged period of hot weather; which was "only partially offset" by The World Cup. 01 LFLs were 7%, and comps from 02 FY17 were 1.4%, so the 2 year comp has moved lower to just 6.2% (01 18 10.8%). The rollout cut is likely to be a focus of attention. 22 UK sites have been opened so far this year, with guidance for 60 FY18 openings 'of which several uncertain on timing'. This is lower than Barclays current forecast of 70 sites, and previous guidance of 65-75 openings. Franchisee store profits are up 5.3% in Hl, vs LFLs of 5.9% indicating slightly lower margins, but despite cash profit growth, the slower rollout may well indicate some tensions between the company and franchisees. The company announced on 6th August 2018 it has acquired another London franchisee (Hamandi Investments Ltd). The consideration was £7.5m for 6 stores, which may create further debate about the mix of owned vs franchisee stores. The outlook statement is robust, however, with the comment: 'we expect the full year Underlying Profit Before Tax to be in line with current market expectations'. Longer term, new site targets for the UK are unchanged at 1,600. Valuation: Dec-PE 19.2x, EV/EBITDA: 13.9x, Dividend yield: 3.1%"

[robinnicolson] 07/8/2018 14:01

UBS note:

"Q2 LFL growth of 4.7% ex splits slowed vs. Q1, despite a 2% easier comp, with the benefits of the World Cup offset by warm weather. Adj. PBT increased by 2.5%, impacted by international labour costs. Domino's has opened only 22 new stores in the UK so far and have also agreed to buy a further 6 stores from a London franchisee, potentially indicating the store opening environment is now more challenging.

Whilst the stock has already been weak into results, we believe the slower LFL growth, weaker profit growth and store opening run-rate will be a concern."

[robinnicolson] 07/8/2018 13:57

Canaccord note:

"Domino's interims confirmed that it has had a good H1, despite the unseasonably hot weather, with PBT (Adj) of £45.7m vs CGe of £45.9m and EP5 +6.8% to 7.8p vs CGe of +7.5p. Domino's has maintained its full year FY18E guidance despite a slowdown in Q2 UK L4L growth and a reduction in new UK store openings to c.60 from previous guidance of 65-75 (CGe 70). H2 L4L comparatives get tougher but it should continue to deliver +5% pa over the medium term. The dividend was hiked 8% and the SBB should recommence shortly. We retain our BUY recommendation and 425p share price target
Domino's share price performed poorly running into these interims, not helped by the recent Sunday Times article, and it now trades on relatively undemanding multiples (at yesterday's close) of 19.6x PER for FY18E falling to 17.5x for FY19E and on a 5.1% FCF yield changing to 5.7% for FY19E. Our 425p share price target is based on a basket of valuation metrics and is equivalent to a PE of c.26x, an EV/EBITDA of c.17x, and FCF of +4.0% for FY18E. Our DCF generates a target price of 465p; we derive an adj. Quest value of 399p. We value the German associate at 15p."

[philanderer] 07/8/2018 13:22

Midday market report..


Domino's Pizza was the worst performer in the FTSE 250, slumping 10% as it registered a loss for its international business over the first half of the year.

"These results will be received with something between grudging acceptance and mild disappointment...Domino's is executing well in the UK with strong growth in sales and resilient earnings. But overseas, where the group has been expanding rapidly through acquisitions as well as new openings, profits have come in below par," commented Steve Clayton, manager of the Hargreaves Lansdown Select UK Growth Shares fund, which holds a position in the stock.

For the six months to July 1, Domino's revenue grew to GBP259.1 million from GBP211.3 million year-on-year, as pretax profit fell to GBP41.7 from GBP46.2 reported a year ago as high wages in Norway hiked administrative costs to GBP52.7 million from GBP30.6 million year-on-year.

Domino's total sales were up 13% to GBP616.6 million from GBP546.5 million year-on-year, with UK & Ireland sales up 8.1% to GBP565.1 million from GBP522.7 million. The company's international business recorded an adjusted operating loss of GBP1.8 million.

Alliance News

[philanderer] 07/8/2018 09:30

Liberum reiterating 'sell'

Numis and Peel Hunt reiterating 'buy'

[hybrasil] 07/8/2018 09:03

A sell I would say. Good call by liberum

[tsmith2] 07/8/2018 08:19

Stellar p/e. Earnings growth disappointment..also discretion spend under increasing pressure.not tempted

[danieldanj] 06/8/2018 20:48

Domino’s Pizza (DOM) Earnings-Reaction to Keep an Eye

[philanderer] 31/7/2018 09:30

Numis and Peel Hunt reiterating 'buy'

[salonie] 30/7/2018 19:11

Agree with Liberum Capital, this is SELL with all the unrest. Not so good the way they treat people!

[ianian4] 30/7/2018 16:28

Interesting article quoting Liberum Capital, who have this as a sell. Wonder why they are selling that particular story. Should have got a quote from the other so called experts.
Anyway, if David Wild drives a hard bargain to make more profit by Dom rather than the franchise owners, I know where my loyalty lies. If you take on a franchise, you need to read the small print. The other option is to give most of your profit over to the franchises and declare a loss. Maybe good for the shorters in the pocket of Liberum.

[jak1] 30/7/2018 15:21

Thanks,did not see that. Not good news at all...