Will Investors Be Taking A Slice Of Domino’s Pizza Earnings?
Spreadex | Aug 01, 2018 11:37
Things were looking good for the fast food chain, with the stock climbing from an opening price of £3.46 to a 16 month high of £3.90 by early June. However, news that CFO Rachel Osborne had abruptly left the company on June 12th sent the stock sharply lower, her departure making it 3 chief financial officers in 3 years.
The firm hasn’t been able to stop falling since then, and with the addition of reports of tensions between the company and its franchisees, Domino’s Pizza Group now sits at a current trading price, and 5-ish month low, of £3.16.
The pizza purveyor’s last update came at the end of April. For the 13 weeks to April 1st it posted an 18.3% surge in group systems to £311.1 million, breaking down as a 10.3% rise in the UK and ROI on an organic basis, and a 17.6% increase internationally.
UK like-for-likes, meanwhile, were up 7%, with a 3.5% increase in the Republic of Ireland, as Domino’s stated that the ‘negative impact of the severe weather in March was offset by a strong New Year performance and the timing of Easter’.
In terms of Tuesday’s interim results, investors are going to want to see that this double-digit system sales growth carried into the second quarter. If anything, they might be looking for even bigger numbers, especially like-for-likes, given the period covers the potentially takeaway-boosting first half of the World Cup.
Domino’s Pizza Group PLC (LON:DOM) has a consensus rating of ‘Hold’ alongside an average target price of £3.77.
Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.
Get The App
In relation to spread betting, Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone, so please ensure you fully understand the risks involved.
Original post
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.