Leading analyst Simon French has issued a ‘Sell’ note on Domino’s shares ahead the group’s AGM next Tuesday and said it was “not possible to justify the group’s current valuation”.

He said: “We believe Q1 has been very strong for the group reflecting favourable weather conditions and continued improvement in marketing spend and efficiency. After the first eight weeks of 2015, UK like-for-like sales were up 9.5% and we forecast 10.0% like-for-like sales growth for the quarter.

“The outlook however remains less favourable with intense competition in the space from Just Eat, Hungry House, Uber, PizzaExpress and Burger King to name a few. Furthermore with more challenging comparatives in June/July from last year’s football World Cup and a three-month heat wave forecast, which would negatively impact sales, we think it is not possible to justify the group’s current valuation; the stock trades on a 2015E P/E of 25.9x and yields 2.6%.”