Domino’s Pizza is set to deliver strong results in its half yearly results on Tuesday (29 July), according to Nick Batram at Peel Hunt who issued a Hold recommendation and a target price of 591p.
Batram said: “A strong Q1 in the UK & Ireland, together with evidence that people have preferred to watch the World Cup at home, suggests there is room for a positive surprise from H1 numbers. The caveat being Germany.”
“We are looking for a c10% improvement in UK EBIT to around £28.5m. The extraction from owned stores in Germany has been painful and we expect a similar H1 loss (£3.2m) to last year. Overall PHe for H1 PBT is £25m vs £22.2m last time.
“The shares have been range bound (c500-560p) during 2014 and interim results may push the shares to the top end of this – presenting a potential trading opportunity.”
Prior to the World Cup Domino’s anticipated a peak in pizza orders that could top six million pizzas for June and July.
