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Domino’s Pizza to beat FY market view, shares hit high

Domino’s Pizza to beat FY market view, shares hit high
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First Published: Thu, Oct 01 2009. 01 59 PM IST
Updated: Thu, Oct 01 2009. 01 59 PM IST
London: Britain’s biggest pizza delivery chain, Domino’s Pizza UK & IRL, said it was on track to beat full-year expectations after strong trading in the third quarter, sending its shares to an all-time high on Thursday.
Chief executive Chris Moore said marketing campaigns had played a major role in its success during the period.
The company has completed the second year of a three-year sponsorship deal for TV phenomenon ‘Britain’s Got Talent´ and has also advertised during the hugely popular ‘X-Factor’.
That has coincided with a period in which customers have increasingly opted to stay in and order takeaways rather than eating out to save money during the recession.
Domino’s shares, which have outperformed the FTSE All Share Leisure & Travel index by 46% over the past 12 months, were up 2.2% to 298 pence at 0748 GMT, having earlier been as high as 307 pence, valuing the business at £480 million ($765 million).
The company, which operates the British and Irish franchises of the global home delivery brand, said like-for-like sales increased 10.8% in the third quarter, covering the 13 weeks to 27 September.
For the 39 weeks to 27 September, comparable sales were up 8.3%.
Altium Securities upgraded its 2009 pretax profit forecast to £28 million from 27.2 million previously, reiterated its ‘buy´ recommendation and lifted its price target on the stock to 350 pence from 340 previously.
“Domino’s has one of the most compelling growth stories within our stock universe. The likelihood of further upgrades to estimates over the forecast period remains high,” said Altium analyst Greg Feehely.
Numis, which reiterated its ‘buy’ recommendation and lifted its price target to 360 pence from 330 pence, upgraded its pretax profit forecast for the current year to £27.8 million from 27 million.
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First Published: Thu, Oct 01 2009. 01 59 PM IST