Domino's Pizza - Growing the base

Domino’s Pizza Group’s (DOM’s) new CEO has set an ambitious long-term growth target, including an acceleration in its net store opening programme. With better alignment between the company and its franchisees, management believes DOM should be capable of generating improved profit growth, versus that achieved in recent years, and potential higher returns.

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Domino's Pizza: Sources of Competitive Advantage, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (08/22)

Given the impact of inflationary headwinds, Domino's has been working out ways to improve its consumer pricing architecture in the U.S. The management saw the average price rise close to 6% in the last quarter which helped the company surpass revenue expectations of Wall Street. However, it failed to meet earnings expectations. For interact with their customers, the management started various initiatives such as the carryout tips offer, which gave customers a $3 tip that could be used to pay for

Domino's Pizza Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report, Key Risks & ESG Assessment (03/2022)

Domino's delivered a strong set of results for 2021 manifesting the immense growth potential of the brand all over the world. The company’s retail sales growth has improved, driven by a combination of same-store sales and store additions. Domino’s model was so robust that except for the rollout of the contactless car-side carryout feature, the management had to change barely anything in the model to adapt to the coronavirus situation. With a best-in-class e-commerce interface and a delivery-orie

Domino's Pizza Inc.: Financial & Price Forecasts, DCF Valuation, ESG & Other Risks (03/22)

The 2021 results of Domino’s once again demonstrated the powerful growth potential of the brand all over the world. The company’s retail sales growth has improved, driven by a combination of same-store sales and store additions. It is worth highlighting that Domino’s operates on a highly profitable and lean business model. Aggressive purchasing in Domino’s company-owned store markets contributed to the same-store sales gap between franchise store and corporate store business. The ticket comparab

Domino's Pizza Inc. - Investment Thesis, Key Drivers, Financial & Price Forecasts, DCF Valuation 10/21

This is our first report on Domino's Pizza, the world's largest pizza delivery business. The company has been one of the best foodservice performers after it managed to generate a double-digit top-line growth in the pandemic year when the rest of the industry was struggling to survive. The past few months have also been good for Domino’s though it does face its fair share of challenges with respect to inflation, labor shortages, and possibly increased competition. Domino’s is known to operate on

Dominos Pizza - On the front foot

Delivery is the byword for Domino’s, with successful affirmation in 2020 of a proven model in challenging conditions. With collection (21% of 2019 sales) hampered by COVID-19 restrictions, delivery stepped up with 24% top-line growth, driving a 7% rise in full-year like-for-like PBT. This is complemented by a new digital-led strategic plan (medium-term target of 20–40% higher system sales) and a commitment to return surplus cash to shareholders (£88m for 2020). Also, longstanding friction with

Morning Song

CVS Group (CVSG LN) Sector corporate development | Domino’s Pizza Group (DOM LN) Mixed interims | Pebble Beach Systems Group (PEB LN) FY revenue expected to be slightly below expectations | PROACTIS Holdings (PHD LN) FY EBITDA in line but revenue disappoints, decent acquisition | TClarke (CTO LN) Positive H1 outturn; Margin up 60bps; EPS up 47%

Key takeaways from the Consumer reporting season

With a busy reporting season behind us we use this note to take stock. Stepping back we pull out the key themes which emerged across the sub-sectors we actively follow in the consumer space. On balance there was more cause for optimism. This is supportive of our top-down view that there is scope for a better H2 for consumer related stocks as cost headwinds ease and pressure on disposable income moderates. We also take a close look at 7 stocks we actively research and which reported over March an

Morning Song

Applied Graphene Materials (AGM LN) Collaboration on W Motors Fenyr SuperSport car | ATTRAQT Group (ATQT LN) Opportunities intact, focus on execution | Domino’s Pizza Group (DOM LN) Good set of finals and strong start to FY18 | Frontier Smart Technologies Group (FST LN) Strong results with more to come | Spirent Communications (SPT LN) Good progress in FY’17 | Summit Therapeutics (SUMM LN) Enrolment opened for an additional group in PhaseOut DMD trial

Good set of finals and strong start to FY18

Finals this morning have come in at upper end of market expectations with PBT +10% to £94.4m and EPS +14% to 15.1p vs our 15.2p. As signalled in the pre-close update, the UK LFL was +4.8% with a strong bounce back in H2 following a weak H1. Commentary around the international operations is positive and management is confident about further progress in this area, albeit the 4 territories only accounted for <1% of FY17 EBIT. Given last years setback re a weak start to FY17 (Pizza Hut competition,

Morning Song

Brooks Macdonald Group (BRK LN) +7% Q2 FuM, reiterating BUY on sustained growth | Domino’s Pizza Group (DOM LN) Strong Q4 resulting in a beat | dotdigital Group (DOTD LN) New CFO appointment | EMIS Group (EMIS LN) Loss of minor contract | Restore (RST LN) Y/E update confirms another year of strong growth | UDG Healthcare (UDG LN) Positive Q1 update

Strong Q4 resulting in a beat

Strong Q4 trading update from Domino’s this morning. Group system sales grew by 18% with good performances across all territories. UK LFL’s grew by 6.1% ex splits and by 4.8% on a 52 week basis. International commentary and metrics make positive reading also. Net, the company is guiding to the full-year outcome being “slightly ahead of market expectations”. We are 4% ahead of consensus at the PBT level so keep our numbers unchanged. This is a pleasing update and demonstrates the company got back

N+1 Singer - Domino's Pizza Group - Strong Q3 update suggesting H1setback is being overcome

Some better trading news from Domino’s this morning. After a difficult first half when UK LFL sales softened to a flat showing, the Q3 update reveals a UK LFL showing of 6%. We were anticipating a 3-4% showing. This pick up was partly supported by a softer 3.9% comp, favourable weather and a more effective marketing campaign. Total UK sales were up 12.1% and group system sales ahead by 20.8%. Commentary on new store additions and the Nordics/Switzerland is reassuring also. Management is signalli

Topps Group (TPT LN) - Initiation: Market leader trading at cyclical lows

Topps Group is the UK’s largest specialist supplier and distributor of tiles and associated products to the UK’s domestic and commercial markets. Each of the last three years the Group has successfully achieved record revenue in a market that’s seen recent volume declines and regional peers enter administration. Following the right sizing of its business, Topps Group is now well positioned to capitalise on the economic recovery and continue taking share from competitors, supported by its global

HeiQ - Forecast update and Ecolab contract

HeiQ reported its interim results for the 12-months to December 2023, a period characterised by challenging conditions in the markets in which the company currently operates. In-line with the recent trading update, the company reported revenues of $41.7m for FY23 and closed the period with a cash balance of c$10m and a net debt position of $2.2m. We have updated our forecasts to reflect the FY23 results and HeiQ’s outlook in 2024, leaving our revenue forecast unchanged but adjusting gross margin

Pinewood Technologies (PINE LN) - Strong results, growth ahead

Pinewood Technologies’ results for the 13 months to 31 January 2024 confirmed good growth in user numbers, revenue and operating profit for the continuing automotive software business. Our unchanged forecasts (see 6 March research) show strong revenue growth, high margins, and good cash generation over the period to FY26 as the Group executes its accelerated growth plan. As of Tuesday this week, Pinewood’s shares are ex-dividend and a 1-for-20 share consolidation is effective, meaning our discou

Morning Note – 24 April 2024

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Hybridan Small Cap Feast - 24 April 24

24th April 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day Admissions: Delistings: What’s baking in the oven? ** Potential**** Initial Public Offerings: Reverse Takeovers: 16 April 2024: Electric Guitar (ELEG.L) Concurrent with its Admission to trading on AIM, Electric Guitar is proposing to acquire the entire issued share capital of 3radi

PROGRESSIVE: Gear4music: FY24 trading in-line and debt reduction ahead of market expectations

At its FY23 results in June 2023, G4M announced its intention to focus on product margins, overhead cost reduction, and efficiency ahead of revenue growth, along with further net debt reduction, in FY24. The FY24 year-end trading update confirms G4M has delivered on these rebalanced priorities, with gross margin rising and net debt almost halving compared with FY23. Cost savings achieved in FY24 and the continued development of higher-margin categories should deliver further upside in FY25E.

React Group H1 Trading Update

React Group has released a positive update that has confirmed that the strong 2H 2023A momentum has continued into 1H 2024E, with what was described as a ‘record trading performance'.

PPHE Hotel Group Limited

PPHE has released its usual Q1 trading update (31 March period-end) which reads reassuringly. The outlook says that “the Board remains confident in delivering full year performance in line with market expectations”. Revenue rose by 11.9%, from £68.8m to £77.0m. Growth was 11.0% on a Like-for-like (LFL) basis excluding the first three months of operation from art’otel Zagreb, Croatia. Revenue growth was driven by a rise in occupancy as room rates continued to normalise across both leisure, corpo

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Hybridan Small Cap Feast - 25 April 2024

25th April 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day Admissions: Delistings: Smart Metering Systems (SMS.L) has delisted from the AIM market What’s baking in the oven? ** Potential**** Initial Public Offerings: Reverse Takeovers: 16 April 2024: Electric Guitar (ELEG.L) Concurrent with its Admission to trading on AIM, Electric Guitar

Pinewood Technologies (PINE LN) - Driving growth in automotive software

Pinewood’s transition to a pure-play automotive SaaS business is now largely complete. Today we introduce summary forecasts out to FY26 and reiterate the investment case. We see significant opportunity for Pinewood to grow its user base in the UK and internationally whilst generating high EBITDA margins and cash conversion. With a 24.5p special dividend embedded in the current price (payable Q1/Q2), the effective price today is 12.3p. Based on the Group’s FY27 target of £27m EBITDA, we estimate

PROGRESSIVE: Vertu Motors: Traction control

Vertu is the fourth largest automotive retailer in the UK, with 188 sales outlets and a track record of cross-cycle growth, principally through businesses it has acquired, funded by equity, debt and most importantly cash generation. Vertu operates across the entire vehicle lifecycle, including new and used vehicle sales, and vehicle servicing, repair and parts. Service and repair is a 40+% gross margin repeating business. With economic headwinds, the transition to electric vehicles, recent overs

Zeus Top Picks for 2024 - 2023 review and outlook for 2024

On 9 January last year, we set out our ten top stock picks for 2023, for what turned out to be another relatively poor twelve months for UK equities due to two wars, stubbornly high inflation and further tightening of monetary policy. This was even as other major markets, such as the US, largely recovered in the year. In the 2023 calendar year, the AIM All-Share index fell 8.2% and is still 42% off its 2021 high. From the release of our 2023 top picks note, the average total return (assuming div

AKA: Initiating Coverage of a.k.a. Brands with Buy and $14 PT: Upside Ahead

We are initiating coverage of a.k.a. Brands Holding Corp. ("a.k.a. Brands" or the "company"), a leading owner of primarily online apparel-based brands focused on Generation Z and Millennial consumers, with a Buy rating and $14.00 price target, or 10.9X our 2025 EBITDA projection of $20.2 million. The company's brands include: 1) Princess Polly, focusing on 15 to 25 year-old women; 2) Petal & Pup, which offers feminine styles for 25 to 34 year-old women; 3) Culture Kings, a street wear destinatio