Do Brits like Domino’s Pizza (DOM) enough to warrant 1,600 stores across the UK? Chief executive David Wild seems to think so. That’s the number of sites that could be open in around seven years’ time, up from the 1,045 currently in operation. A record 95 stores opened last year, helping to boost system sales by 9.2 per cent to £1.1bn. Up to 75 more are planned for 2018.
Traditionally, stores have opened with at least 30,000 addresses in the area, but this has now shrunk to as little as 14,000. But Mr Wild said smaller catchment areas could be just as profitable, if not more so, than the larger ones. Opening stores in smaller locations tends to be less costly for franchisees, and delivery is faster and less expensive, so customers receive better service and are more likely to order again.
Analysts at Numis expect pre-tax profit of £99.5m during 2018, giving EPS of 16.7p, compared with £94.4m and 16p in 2017.
| DOMINO'S PIZZA (DOM) | ||||
| ORD PRICE: | 322.7p | MARKET VALUE: | £1.55bn | |
| TOUCH: | 322.6-322.9p | 12-MONTH HIGH: | 395p | LOW: 256p |
| DIVIDEND YIELD: | 2.8% | PE RATIO: | 23 | |
| NET ASSET VALUE: | 9p* | NET DEBT: | 138% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2013** | 267 | 21.6 | 3.6 | 5.3 |
| 2014** | 289 | 62.1 | 9.9 | 5.8 |
| 2015** | 317 | 73.2 | 11.9 | 6.9 |
| 2016 | 361 | 82.5 | 13.1 | 8.0 |
| 2017 | 475 | 81.2 | 13.8 | 9.0 |
| % change | +32 | -2 | +5 | +13 |
| Ex-div: | 15 Mar | |||
| Payment: | 24 Apr | |||
*Includes £114m of intangible assets, or 24p a share **EPS and DPS figures adjusted for three-for-one share split in June 2016 | ||||
