Domino’s Pizza is effectively winding down its German venture. It is selling the master franchise to a newly formed JV alongside Domino’s Pizza Enterprises. It will be a 33% shareholder in the JV for 4-6 years. At the same time the JV is acquiring the market leader in the territory, Joey’s with 212 stores for 6.4x EV/EBITDA. We estimate the transaction to be c.6% EBIT accretive for FY16 but feel the move negatively impacts the mid-long term growth thesis which was reliant on a successful 100% ow ....
16 Dec 2015
Germany – short-term fix but mid-long term growth expectations lowered
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Germany – short-term fix but mid-long term growth expectations lowered
Domino's Pizza Group plc (DOM:LON) | 329 7.2 0.7% | Mkt Cap: 1,319m
- Published:
16 Dec 2015 -
Author:
Sahill Shan -
Pages:
4
Domino’s Pizza is effectively winding down its German venture. It is selling the master franchise to a newly formed JV alongside Domino’s Pizza Enterprises. It will be a 33% shareholder in the JV for 4-6 years. At the same time the JV is acquiring the market leader in the territory, Joey’s with 212 stores for 6.4x EV/EBITDA. We estimate the transaction to be c.6% EBIT accretive for FY16 but feel the move negatively impacts the mid-long term growth thesis which was reliant on a successful 100% ow ....