Leading analyst Nick Batram, of Peel Hunt, has said Domino’s brand recognition is growing faster than expected in Poland.
Following a site visit to Warsaw, Batram said he was encouraged by performance in the past 18 months and expected the business to be worth materially more than the £33m valuation today
He said: “Recent results have shown growing momentum in the business and this was definitely the impression we got seeing the stores and the commissary in operation.
“The evolution in the business and management since our last visit in 2012 is marked.
“There is real confidence that the store model has been perfected and the strength of the openings outside Warsaw suggests the brand recognition is spreading at a faster rate than we had expected. With just 21 stores DP Poland is still someway from becoming a fully established national brand/chain, but the progress is highly encouraging.
“The business may not be profitable at the EBITDA level until 2018 but the momentum should be sufficient to drive continued outperformance.
“Our view is that an established national Domino’s Pizza master franchise, should ultimately be worth a multiple of the current market capitalisation.”
