TIPS FOR SHARING MIDAS: Do not grab a slice of pizza from the giant Domino's still

Warm up: good weather may have affected Domino's summer sales

TIPS FOR SHARING MIDAS: Do not grab a slice of Domino's pizza giant just as the chain issues a prudent update

Holly Black for mail on Sunday

The long, hot summer has seen people light barbecues instead of phone for pizzas and that's bad news for Domino's Pizza. This week, the network published a prudent update on the United Kingdom, which represents more than 80 percent of the turnover.

Domino & # 39; s reported a 5.9 percent increase in similar sales in the United Kingdom and Ireland in the first half of the year, which brings us to July 1, with an operating profit of 8.1 percent. one hundred to £ 48.2 million.

Summer seems to have got off to a good start: the group says it sold 8.3 million pizzas during the World Cup, but has yet to reveal the impact of the ongoing heatwave.

Warm up: good weather may have affected Domino's summer sales

Warm up: good weather may have affected Domino's summer sales

Domino's insists that it is on track to meet year-round forecasts, but concerns have been expressed about its operations abroad. While it made gains in Germany and Iceland, events in Switzerland and Sweden have so far had less success.

In general, the overseas arm recorded an operating loss of £ 1.8 million in the first half. At the same time, debt has tripled to £ 182.1 million as expansion efforts continue.

Domino's has warned that customers are feeling the pressure as their disposable income remains unchanged. That means that the price and the value become more important.

But Domino & # 39; s received the best ratings for 33 percent of its customers. Comfort is also paramount, and the group saw that online sales in the United Kingdom grew 14 percent year-on-year, and now account for almost 79 percent of sales.

The worries remain. Domino's expected to open 80 new stores in 2018, but reduced that estimate to 60. And only 22 new points of sale were opened in the first half of the year, so it will have to accelerate the progress to reach this last forecast.

Investors released their response this week as £ 146 million was erased from the company's value, with shares falling 10 percent from 320p in the update, although by the end of the week they had recovered slightly to 297p.

Analysts in Liberum have a rating of & # 39; sell & # 39; on the action. The broker thinks that the rate of opening of new stores will be reduced and he worries about the increase in costs.

Midas verdict: Domino's, like many other fast food chains, struggles to struggle in the form of increases in food costs and the national living wage, and high business rates. Current investors must maintain. New investors may want to discover how a scorching summer has affected sales before deciding whether to take a portion of the stock.

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