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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Domino's Pizza - Beats expectations again

September 2009

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • DOM
  • Price:
  • 238p
As is its tradition Domino's Pizza's results have once again beaten broker forecasts with latest interims showing pretax profit increasing 25% to £13.6m and eps rising 21% to 6.2p in the 26 weeks ended 28 June. Profit growth came partly thanks to an increase in gross margins from 37.1% to 38% helped by lower food input costs (flour and cheese), price increases and lower distribution costs following falls in fuel. There was also strong top-line growth with system sales rising 15% to £196m while like-for-like sales grew 7%. Net cash generated increased from £2.1m to £8.7m and in spite of £13.8m of capital expenditure, net debt only increased from £13.5m to £18m.The combination of short-term discounting offers, new products an ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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