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REPORTING SEASON: Domino’s Pizza (DMP)

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Figure 1: Domino’s Pizza 12 month chart

 

Domino’s brings in the dough with sixth straight rise in half year sales

 Domino’s Pizza (DMP) posted a modestly better than expected 66.7% surge in Net Profit to $29.1m for the six months ended 28 December 2014.

 The result was driven by improved revenue across all three operating regions: Australia/New Zealand, Europe and Japan. A 57% surge in revenue from its 354 Japan stores contributed most to the group’s income.

 DMP opened 92 stores across the group and seems to be taking market share away from Pizza Hut locally. Same Store Sales (SSS) growth (which doesn’t take into account new store openings over the half) jumped by 10.6% in Australia/NZ. DMP attributed this partly to the success of its $4.95 Cheaper Everyday promotion.

 DMP will pay eligible investors a fully franked $0.246/share interim dividend on 10 March. This is a 39% rise on this time last year.

 Looking ahead DMP expects to be the leader in Japan’s pizza delivery segment before the end of FY15 with over 380 stores. The $2.8bn pizza maker has upgraded its guidance with NPAT expected to grow by 32.5% over the year.

 

You can see all of CommSec’s reporting season analysis by clicking here.

Steven Daghlian, Market Analyst,