Anyone looking at investing in Dominos Pizza Enterprises? Stock has tumbled with a -21% drop over the last 5 days following lower than expected net profit which they have attributed to reinvestments in the business. Anyone looking at buying the dip. Currently $80.52 per share with 52 wk high of $167.15.
Are you eating 🍕? Does your family and friends eat 🍕?
They have a lot of competition from the frozen pizza segment.
Yeah Dominos are losing there on the taste front.
If the "big money" has knocked the price down to $80.52 then that is probably where it should be. At a forward p.e. of x 36.8 it is still not cheap and you are paying a premium for anticipated future growth. Not for me.
Stock has tumbled with a -21% drop over the last 5 days
That is has…. But as you also said
Currently $80.52 per share with 52 wk high of $167.15.
Its down OVER 50% from its high…… Looking at the YTD chart its been a slow drift down.
Has it hit the bottom? Who knows!
Banking on the 'Back into the office, tight ass managers need to throw on a pizza for the 'unplanned' overtime'?
No Idea, Typically junk food performs well when the economy is down. My personal opinion is that Domino's is struggling because it has tried to transition into a premium product to compete with Crust or Pizza Capers but have failed.
Of course this has no bearing on whether or no bearing what so ever on if $80.52 is a good or bad price.
Domino's is struggling because
I think its the cycle of life…. Back in the 80s pizza hut was all the rage. Dine in options, all you can eat buffet etc, pizza hut was everywhere, in all the movies etc. Then it kinda went south and other companies like dominos popped up to take over and now Pizza hut is a shadow of its 80s life.
Lots of food companies go through cycles of being really popular and then fizzing out, replaced with the next new thing.
Dominos boomed during the 'stay at home' orders, but there is only so much pizza you can eat.
Oh man, those Pizza Hut buffets for birthdays were so good!
Last one left open is in ballarat!!! Treat the kids (and you)!
Buy in doom and gloom . I think discount coupons aren't eroding profits as much with help of Franchisees taking the hit. Its a nice Oz global company .
Forward p.e. of x 36.8 = decent price .
Dominos and Pizza Hut were great in my teenage years and early 20s. But once I hit my mid-late 20s and uber eats came along, I just wanted better quality pizza.
As for topic, I'd hold off for now. Still likely to end up catching daggers at this point.
Try my area with surrounded with like 20 pizza places that are all crap with Pizza Hut being the worst .
No choice but Dominos heavily discounted codes for me.
Did you ever do pizza hut all you can eat?
Those work the good days!
Now i'm the same. I just want nice wood-fired pizza.
As a kid, yeah. Looking back, I never really liked eat-in. I only ever wanted Meatlovers and by the time I'd get to the buffet, there would never be anything left.
I also have fond memories of raiding the chocolate mousse machine.
I feel like dominos did its dash about 5-6 years ago with that rapid expansion / growth where it took over a heap of market share from P/Hut. Do you feel like the company (and therefore share price) is going to keep growing significantly over the next few years?
Fast food is hurting as people spend less on eating take away because lockdowns have ended now.
I was just looking at this, from the results keep in mind the following:
First half comparison (~-6% EBIT vs LY) is to a very strong prior year result, when EBIT rose ~+30% which means on a 2 year view EBIT is ahead ~25%.
Sales itself rose ~+11% but margins were down (-6%) so driven by cost pressures.
JP sales after their lockdowns dropped a fair bit and the margin was also impacted negatively but they expect growth into the future but not to the same extent as during the pandemic (I guess people being at home etc).
AU/NZ had sales growth but margins went backwards.
With inflation being noted in wages, produce etc (literally everything - if news it to be believe) these guys will also have this flow through their margins unless they pass it on like for like through sales prices (which I don't think they will + us on ozbargain don't pay RRP and use all the codes lol).
Looking on Selfwealth (Refinitiv Forecast) the EPS is expected to be $2.06 in FY22 or ~40 P/E and $2.55 in FY23 or ~32%.
So based on the above your decision would be related to if you accept the FY22/FY23 returns based on current Share Price to be sufficient for your investment requirements + you think SP will also go up? I personally wouldn't pay more than 25 P/E for this.
I believe this stock / business might struggle so will avoid it and am taking a contrarian view on coal stocks and buying some of that up since the ones that are actually producing and have healthy margins (even at lower prices) with lower debts due to being cash cows right now will be great in the next few years (dividend wise) because there is a lack of funding for such projects but coal is still going to be around for a little while longer.
*I don't own DMP
* I own a few mining stocks
Not me. Personally I think Dominos make low quality products, so if I get them, I only use discounted vouchers. I'm sure others do too. I think the low quality product + the use of discounted codes hits Dominos financially, making it (in my view) not a very good investment.
Then again, I have never invested in any shares and have no idea about the investment scene. I came across this thread while looking for discount codes for Dominos.
This thread is 4 months old. Current stock price is $66 after hitting it's low point this june of $60
They do, but 90% of the supermarket is low quality products too. People in the states getting interviewed why they buy junk food say they simply can't afford fresh food. I feel that's incorrect (no nutrients, body demands more food, obesity, body demands more food, viscious cycle) but that's the way people are viewing it.
But they seem to be lost. They were shining examples of how to do marketing and apps well back in the day, but I saw how poorly their app was rated the other day and nearly didn't download it. Saw it first hand as I attempted to get delivery but had to abort because my street name was only found in San Francisco - never had that happen with Menulog etc.
Doesn't sound smart to do so then.