-1.68%
0.76%
-14.17%
-4.45%
-16.57%
-18.12%
-8.49%

Company Description

Domino's Pizza Group plc owns, operates, and franchises Domino's Pizza stores.It operates 1,172 stores in the United Kingdom and 55 stores in the Republic of Ireland.The company was formerly known as Domino's Pizza UK & IRL plc and changed its name to Domino's Pizza Group plc in May 2012.


The company was founded in 1960 and is based in Milton Keynes, the United Kingdom.

Market Data

Last Price 292
Change Percentage -1.68%
Open 298.4
Previous Close 297
Market Cap ( Millions) 1141
Volume 387339
Year High 375.8
Year Low 270.4
M A 50 297.45
M A 200 310.41

Financial Ratios

FCF Yield 6.10%
Dividend Yield 3.66%
ROE -67.25%
Debt / Equity -562.33%
Net Debt / EBIDTA 371.99%
Price To Book -12.13
Price Earnings Ratio 14.99
Price To FCF 16.39
Price To sales 1.69
EV / EBITDA 12.04

News

Business Breakdown

Expected Mid-Term Growth

Segment nΒ°1 -> Franchisees

Expected Growth : 8 %

What the company do ?

Franchisees of Domino's Pizza Group plc are independent business owners who operate Domino's Pizza stores under a franchise agreement, responsible for daily operations and customer service.

Why we expect these perspectives ?

Strong brand recognition, increasing demand for online food delivery, and strategic expansion into new markets drive growth for Domino's Pizza Group plc franchisees. Effective marketing campaigns, innovative menu offerings, and efficient supply chain management also contribute to their success, resulting in an 8% growth rate.

Segment nΒ°2 -> Royalties, Franchise Fees and Change of Hands Fees

Expected Growth : 9 %

What the company do ?

Royalties are fees paid by franchisees to Domino's Pizza Group plc for use of brand and operating system, Franchise Fees are initial fees paid by franchisees to acquire the business, and Change of Hands Fees are paid when a franchise is sold or transferred.

Why we expect these perspectives ?

Domino's Pizza Group plc's 9% growth is driven by increasing royalties from expanding store count, higher franchise fees from improved sales and profitability, and rising change of hands fees from store refranchising and acquisitions. Strong brand recognition, digital transformation, and strategic partnerships also contribute to the growth.

Segment nΒ°3 -> National Advertising and ECommerce

Expected Growth : 12 %

What the company do ?

National Advertising and ECommerce from Domino's Pizza Group plc refers to the company's centralized advertising efforts and online sales platform, promoting brand awareness and driving online orders across the UK and international markets.

Why we expect these perspectives ?

Domino's Pizza Group plc's 12% growth in National Advertising and ECommerce is driven by increasing online ordering, targeted marketing campaigns, and strategic partnerships. Additionally, investments in digital platforms, menu innovation, and enhanced customer experience contribute to the growth. Furthermore, the company's focus on convenience, value, and quality resonates with customers, leading to increased sales and market share.

Segment nΒ°4 -> Corporate Store

Expected Growth : 11 %

What the company do ?

Corporate Store is a company-owned Domino's Pizza outlet, directly managed by Domino's Pizza Group plc, ensuring brand consistency and high operational standards.

Why we expect these perspectives ?

Domino's Pizza Group plc's Corporate Store segment growth of 11% is driven by strategic store openings, increased online ordering, and enhanced customer experience through digital transformation. Additionally, effective marketing campaigns, menu innovation, and operational efficiency improvements contribute to the growth.

Segment nΒ°5 -> Property Income on Leasehold and Freehold Property

Expected Growth : 7 %

What the company do ?

Property Income on Leasehold and Freehold Property refers to the rental income generated from leasing out properties owned by Domino's Pizza Group plc, including both leasehold and freehold properties.

Why we expect these perspectives ?

Domino's Pizza Group plc's 7% growth in Property Income on Leasehold and Freehold Property is driven by strategic store openings, increasing rental yields, and effective asset management. Additionally, the company's focus on franchising and partnerships has led to higher revenue from rental income, while cost savings initiatives have improved profitability.

Domino'S Pizza Group Plc Products

Product Range What is it ?
Pizza A variety of hand-stretched pizzas with different toppings and crust flavors
Sides Assortment of sides including breadsticks, chicken wings, and potato wedges
Desserts Sweet treats such as chocolate lava cakes and ice cream
Beverages Soft drinks, juices, and bottled water
Deals and Combos Meal deals and combos that include pizzas, sides, and drinks
Catering Large orders for events and gatherings

Domino's Pizza Group plc's Porter Forces

Domino's Pizza Group plc faces moderate threat from substitutes, as customers have various alternatives for pizza, such as cooking at home, ordering from other restaurants, or using meal kit delivery services.

Domino's Pizza Group plc has a large customer base, which reduces the bargaining power of individual customers. Additionally, the company's strong brand and wide range of products make it difficult for customers to negotiate prices.

Domino's Pizza Group plc has a diverse supplier base, which reduces the bargaining power of individual suppliers. The company's large scale of operations also gives it negotiating power over suppliers.

The threat of new entrants is low due to the high barriers to entry in the pizza delivery market, including the need for significant investment in marketing, logistics, and supply chain management.

The pizza delivery market is highly competitive, with several established players, including Domino's Pizza Group plc, Pizza Hut, and Papa John's. This intense rivalry leads to high marketing and promotional expenses.

Capital Structure

Value
Debt Weight 177.91%
Debt Cost 6.80%
Equity Weight -77.91%
Equity Cost 9.15%
WACC 4.96%
Leverage -228.36%

Historical Valuation

Price/Earnings Ratio

Margin Valuation

Peers Valuation

Competitors

Company Rational
IBS.LS Ibersol, S.G.P.S., S.A., through its subsidiaries, operates a network of restaurants in Portugal, Spain, and Angola. The company operates restaurants under various brands, including Pizza Hut, Pasta CaffΓ©, Pans & …
HFG.DE HelloFresh SE delivers meal kit solutions to prepare home-cooked meals using its recipes. The company offers premium meals, double portions, and others, as well as add-ons, such as soups, snacks, …
JDW.L J D Wetherspoon plc owns and operates pubs and hotels in the United Kingdom and the Republic of Ireland. It operates 861 pubs and 57 hotels. The company was founded …
LGRS.L Loungers plc operates cafΓ©s, bars, and restaurants under the Lounge and Cosy Club brands in England and Wales. As of April 18, 2021, it operated 168 sites, including 138 Lounges …
FSTA.L Fuller, Smith & Turner P.L.C. operates pubs and hotels in the United Kingdom. It operates through Managed Pubs and Hotels, and Tenanted Inns segments. The company also manages pubs operated …

Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
2.92$
Current Price
2.92$
Potential
-0.00%

Expected Cash-Flows

Scoring Insights

Peers Group Analysis

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