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Domino's Pizza - Record run continues; more to come

August 2003

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:
  • 150p
Domino’s has reported results well ahead of those expected for the six months to 30 June. Overall system sales (sales of all the franchisees and company stores) rose 19% to £68.6m . Like-for-like sales grew by 6.9%. Profit before tax and goodwill increased 69% to £2.9m. Fully diluted eps was up 56% to 3.7p.A record 21 stores were opened in the first six months (18 last year) taking the total to 290 stores. This number includes 26 corporate stores following the sale of ten underperforming stores to franchisees and the opening of one new store, in order to concentrate on system expansion.  The sale of the stores generated a profit of £0.3m treated as an exceptional gain but was offset by a exceptional £0.3m cost in order ...

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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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