Full Year PBT is now expected to be "at least in line with current market expectations".
Companies: Domino's Pizza Group
Dominos' (LON: DOM) Q3 trading update out today has reassured investors the Group's full-year performance is on track and has sent shares up 10% in early trading.
The update has said Q3 17 Revenue was £286m, up 21% from £237m in Q3 16, helped along by a boost in digital sales of 17%.
19 new locations were opened in the period, bringing the total number to 1149 stores, while the Group also acquired a £24m, 75% stake in 25 franchisee locations in London, its biggest market.
Management went on to say...
"Despite the continued uncertainty affecting the UK, we are investing in growth and the customer proposition for the long term. We now expect full year capex to be at the lower end of the £50-60m range, and we anticipate full year underlying profit before tax at least in line with current market expectations."
The positive tone of the news meant shares were trading at 335p, up from yesterday's closing price of 302p per share.
DOM currently trades at a PE ratio of 19.5x versus the industry median of 17x, with a market cap of c£1.5bn. The Group has an average annual growth rate for Revenue of 11% in the five years to 2016, with an average annual growth rate of 21% in Net Profit for the same period. Operating margins have averaged 19% in the same five years.