Domino's Pizza Share Discussion Threads

[philanderer] 09/7/2010 20:42

Week Ahead: Domino's Pizza

LONDON (SHARECAST) - There has been no stopping pizza delivery franchiser Domino's Pizza and it is a cast iron certainty that it has had a better World Cup than, say, the England football team. It has certainly delivered more.

Last week the number three operator in the UK pizza delivery market, Papa John, reported 9.7% growth in second quarter like for like (LFL) sales compared to the second quarter of 2009, a slight decrease in the growth rate than it registered in the second quarter.

This could signal a similar scenario at Domino's, which releases interim results on Monday. Panmure Gordon thinks Domino's will report 10% growth year on year in LFL sales for the half year, with the second quarter seeing 9.5% LFL sales growth.

"We think the market will be disappointed by a slowdown in LFL sales growth at Domino's in a quarter where comparatives are the easiest of the year (c+5%) and there is the beneficial impact of the football World Cup," Panmure predicts. It thinks the shares are a sell and has a price target of 300p.

Panmure Gordon is predicting pre-tax profit of £16.3m, up by around a fifth on the first half performance last year, and slightly below market consensus of £16.5m. The broker thinks the firm will bump up the interim dividend in line with the growth in pre-tax profits, which would imply a dividend of 4.20p per share if Panmure Gordon's estimate is correct.

KBC Peel Hunt takes a contrary view and is half expecting the trading update to result in earnings upgrades for the full year as it suspects the management has, as usual, been downplaying its prospects. KBC, like Panmure, also goes for £16.3m profit before tax.

"There could also be share buybacks, presumably by way of tender offer, as last time. It should be remembered that (1) the upgrade is partly in the price and is now routinely expected (2) there could always be stock placings by directors," KBC adds.

[philanderer] 09/7/2010 17:07

403p - 403.5p and that`s a closing ATH.

Well done with your sale matt. Today`s Times seems to know monday figures :-)

World Cup fever has helped Domino's Pizzas to post some very strong results and help them overcome some of the summer lull that is typically experienced as consumers get their barbecues out. The Times recommends waiting for any weakness in prices which would make them worth buying. Prices are currently up 0.35% to 400.80p.



Like SAS, I`m still holding and looking forward to monday`s results.

Apart from Panmure which has been saying 'sell' for the last 3 months when the shareprice has been 341p, 353p and 399p here`s the brokers` targets to date:

27-May-10 Numis....Buy...605.00p

26-May-10 Altium Capital...Buy...500.00p

13-Apr-10 Goldman Sachs....Buy...415.00p

16-Jun-10 Seymour Pierce...Buy...400.00p

So fingers crossed for monday and hopefully some upgrades.

Luck to all and a good (sunny) weekend.

[peterboroughmatt] 09/7/2010 14:56

Sold out on the latest spike up,looks overcooked now.

Matt

[slowandsteady] 09/7/2010 14:47

Good old USofA pushing us up again.

409 was my original target price but I don't think I'll be selling up just yet.

S

[philanderer] 08/7/2010 23:51

Well here`s Panmure`s reasoning behind their 'sell' advice and 300p target price, taken from Daily Mail market report

"Having rallied since directors sold £21.4m of stock at 360p a share in mid-June, Domino's Pizza eased to 399.4p. Panmure Gordon is a seller ahead of Monday's interims after Papa John's, the third largest UK pizza delivery operator, this week reported a slowdown in second-quarter sales growth. It believes the market has become too complacent regarding the ongoing sustainability of Domino's growth."



....it would make more sense to me if they waited on DOM`s monday results and numbers before making such a comment. And in fact Papa John`s shareprice is +3.5% today and +4% on the week. Baffling :-S

[contrarian2investor] 08/7/2010 19:08

philanderer et al,

The neutrals and true football fan are still watching the World Cup. So even though its been hot (which can be detrimental to ordering pizzas)I still think Monday's results will still show nice incremental numbers. c2i

[philanderer] 08/7/2010 16:38

Close 399.4p - 399.9p

And that`s a good performance I reckon on volume of a tad under 350k.

Just one days trading left until monday`s results now.

[philanderer] 08/7/2010 16:25

Well here we are again :-)

400p - 400.7p

[philanderer] 08/7/2010 11:08

Good old Panmure with their immaculate timing have reiterated their 'sell' for DOM this morning with their 300p TP !

That`s about three times in the last three months they`ve done this.

You`d have thought they would have waited for monday`s results - very weird.

But there again they`ve had a 'hold' for Arm Holdings with a 210p TP while ARM continued up through 300p. They`ve grudgingly kept their 'hold' advice there as well this morning but increased it`s TP to 275p.....ARM trading around 290p !!!

[philanderer] 08/7/2010 09:13

Morning SAS

Volume hasn`t been brilliant this week. My guess is many are waiting for monday`s results - and hopefully some broker upgrades.

[slowandsteady] 08/7/2010 08:41

Morning philanderer,

DOM just seems to keep on going at a nice steady pace - something I'm named after and will always look for in an investment.

Good day ahead? - let's hope so.

S

[philanderer] 08/7/2010 08:24

Morning all

402.3p - 404p

Now I saw that :-)

[philanderer] 07/7/2010 21:35

Dow Jones +275

July 7 (Bloomberg) -- Stocks surged, sending U.S. benchmark indexes up the most since May........Retailers advanced as the International Council of Shopping Centers said sales were growing at the fastest pace since 2006, easing concern that a slump in consumer confidence will undermine the economic recovery

[philanderer] 07/7/2010 16:53

Knife edge :-)

400p - 400.2p

...just under 250k traded today and two trading days left until results.

[philanderer] 07/7/2010 16:06

Just back in ..that DJ is a nice surprise.

Hoping to witness this 400p taken out, missed it yesterday :-)

399p - 400p

[slowandsteady] 07/7/2010 15:59

Let's hope those bears aren't around today!

S

[slowandsteady] 07/7/2010 15:12

DJ starting quite strongly now, hopefully it will bring the FTSE up and DOM with it.

Let's see if we can close above 400p

S

[philanderer] 06/7/2010 23:35

dnfa1975, that was posted on Youtube april 2009 !! What`s your point ? Are you long or short here ?

And have the good grace to post the retraction as well as the company response...

"The employees claimed the video was only a stunt and not real. Miss Hammonds apologised to the company in an email message on Tuesday morning. She wrote: "It was fake and I wish that everyone knew that"



==============

DJ picking up a little in the last 30 minutes trading, ending +57.

FTSE fut -39 at present

Consolidation around here for DOM would be good in the lead up to the results monday.

[dnfa1975] 06/7/2010 20:34

NEW YORK - Two Domino's Pizza US employees have been sacked after posting a series of videos on YouTube containing unhygienic antics, leaving the company fighting to contain the impact on its brand as the footage spreads through social media.
One of the employees -- a woman who identifies herself as Kristy -- can be seen filming her colleague, Michael, who starts rubbing a piece of grated cheese in his nostril before placing it on an Italian sandwich.

While Kristy is laughing, she says: "Did ya'll just see that? He just put a booger on those sandwiches."

Michael is then shown placing salami immediately behind his backside and is said to have "let off gas" onto the piece of salami, which is then placed on the same sandwich.


Kristy continues: "In about five minutes these will be sent out and somebody will be eating these -- yes, eating these.

"And little do they know that the cheese was in his nose and that there was some lethal gas that ended up on their salami. Now that's how we roll at Domino's."

[philanderer] 06/7/2010 20:29

Well the markets look like they will resume the downtrend tomorrow.....US has thrown away that 120pts plus about another 25pts at present...FTSE FUT -80.

So in short, nearly everything will be marked down first thing I reckon.

[jon827] 06/7/2010 19:06

I agree... but don't think any correction will break the uptrend

[slowandsteady] 06/7/2010 19:03

Guys,

I'm not really a charter but looking at the chart above I would say we're due a correction...

The price is outside the Price Channel and MACD is nearly off the chart.

Don't be surprised if we see a bit of a dip or a flattening for a while.

I hope I'm wrong!

S

[jon827] 06/7/2010 18:11

buy order moved up to 355 ;-)

[contrarian2investor] 06/7/2010 17:57

philanderer et al,

LSE showing a DOM mid price of £4 exactly, which gives them a mkt of £631.62m. Pretty good when you consider we started the year @£2.98p, which equates to >34% rise in declining general markets. It must be doing well because its also attracted the attention of a significant number of newspaper analysts.

c2i