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.
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