The fast food firm has a sloppy 2017. It peaked around this time last year, striking £3.95 on March 8th. From there things became far more complex. By summer the stock was trading at lows between £2.60 and £2.70, only to dramatically pick up the pace from autumn onwards. This eventually led Domino’s to close out 2017 at £3.47 – still a near 4% decline year-on-year, but far, far better than what it could have been.
Much like in 2017, 2018 saw the stock get off to a good start; it even hit, very briefly mind, an 11 month high of £3.70 on the day of its January update. However, it has struggled since then, at one point falling below £3.20 before rebounding back to a current trading price of £3.27.
Thing is, there wasn’t exactly anything for investors to fret about in Domino’s January statement. The fourth quarter saw the pizza pros deliver a 10.1% surge in organic group system sales to £321.8 million, ahead of the 8.9% growth seen for the 52 weeks to December 24th. In the UK and Republic of Ireland full year like-for-like sales rose by 4.8% and 10.8% respectively, while organic international system sales were up 23% in the final quarter and 17.1% across 2017 as a whole.
In terms of the firm’s outlook, Domino’s stated that it expects full year underlying pre-tax profit to be ‘slightly above the current range of market expectations’ – which currently sit around the £90-92 million mark, roughly a 6% increase on 2016 – and that its annual capex would come in between £45-50 million, down from the £50-60 million previously forecast.
Domino’s Pizza Group Plc (LON:DOM) has a consensus rating of ‘Hold’ alongside an average target price of £3.45.
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