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Domino's Pizza UK & IRL

June 2004

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:
  • 228p
Domino's reported that like-for-like demand is ahead by 4.7% in the new year to date (despite strong comparables of 7.6% last year). Eight franchised stores  opened in the period to take the total to 326.     Numis has since upgraded its forecast to 11.8p eps for this year with 14.8p next. It notes that these are conservatively calculated and are based on 45 new stores and like-for-like sales of just 3%.   The home delivery pizza market is growing and has doubled in size since 1997. Domino's target of 450 stores by the end of 2006 seems credible as take-away units operate on a small local catchment. We still think European expansion is likely before long.  ...

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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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