Goldman Sachs retains its Conviction Buy TP raised from 575.00 to 650.00p

Interim Mangement Statement.


Domino's Pizza UK & IRL plc ("Domino's", "the Company" or "the Group"), the leading pizza delivery company in the UK and the Republic of Ireland, announces its Interim
Management Statement in conjunction with its Annual General Meeting which is to be held at 1pm today [28 March 2012]. Financial data relates to the 13 week period to 25 March 2012 ("the period") unless otherwise stated.

The Company has made a good start to the year with system sales rising by 9.0% to £144.2m (2011: £132.3m) driven by a combination of new store openings and like-for-like sales growth. Like-for-like sales in 660 mature stores increased by 3.5% (2011: 4.2% in 607 mature stores). Like-for-like sales increased in the UK by 3.6% (2011: 5.5%) and the Republic of Ireland by 1.7% (2011: -10.5%).

The Company continues to enjoy strong online growth, with e-commerce sales accounting for 50.6% of UK delivered sales (2011: 39.3%) in the 13 week period. Total online sales for the period were up 44.5% to £59.3m (2011: £41.3m) and, of this, 16.4% was taken through one of Domino's many mobile platforms. In a first for the Company, during the period over £1million in sales were taken through its mobile platforms in a single week. In addition, Domino's continues to develop in the social media arena and now has over 520,000 Facebook fans in the UK, with another 13,700 in the Republic of Ireland (2011: 160,000 total), and over 22,000 Twitter followers (2011: 5,000) in our respective markets.

During the period, six new stores (2011: eight) were opened and, with a large number of locations in the pipeline, the Company is confident of achieving the target of 72 new stores during the full year, of which 12 are planned in Germany.

In terms of food costs, 69% of the food basket for 2012 is fixed at the same prices as 2011, so the Company faces fewer cost pressures, providing additional financial stability to franchisees.

We are pleased with the progress being made in Germany and have successfully integrated the comprehensive market research conducted by the Company in the early months of operation with our robust UK practices. This is beginning to pay off with the right menu now in place, good demographic information and a clear roadmap as to how we will develop in the territory. We have identified a number of great locations in the more affluent west of the country and the first of 12 new stores for 2012 is already under construction. In addition, discussions are continuing with a small number of excellent German and UK franchisees who will play an important role in our expansion.

Lance Batchelor, Chief Executive Officer, commented: "We are pleased with the Group's performance in the first quarter and, although they are just part of the growth story, it is good to see our like-for-like sales continue to increase. It is especially pleasing to see sales in the Republic of Ireland return to positive territory.

"We may have a softer comparative for the second quarter of the year - but we will not be taking our foot off the accelerator. We have a number of marketing initiatives and other programmes aimed at ensuring our franchisees can profitably grow their businesses in the coming months. This, combined with a full pipeline of potential new sites, expansion in Germany, a strong management team in place and our ever improving operational gearing, makes me confident and optimistic about the months and years ahead."

-Ends-

pretty good results i would have thought, so have bought a few this morning in the aftermath of "sell on the news", on the basis (inter alia) that they (and RTN) will do well over the summer and the olympics

i stand by my post above although i am currently nursing a small loss in DOM and larger loss in RTN

yet again i would remind you all of the defensive qualities of this company - even though i gather the product is best left to others!

Any more recent news as to how well their German roll out is going chaps?

What's your German like? :-)

Joking apart, the latest news I've seen is this - Domino's looking to Germany

Yes I saw that skinny but was wondering if there was anything since then.

I can't readily find anything - interims are on Monday 23 July.

OK thanks, maybe Cynic might have something later as he seems to follow these.

i follow but i neither ingest nor digest :-)
i hold these for the reasons stated earlier and would be quite surprised not to see a decent run prior to results

Thanks, no more recent reliable info regarding their German sales then?

nope .... i'm happy to wait and see without chasing around for every snippet

.

DOM had an excellent day today, though it's worth noting how thin the market is in these - barely 800k traded ...... it looks as though there could be some resistance at 520, but of course the real hurdle (if it gets that far) is at about 585

What is amazing this product is not to put to fine a point on it shite! Due to our education system students can't cook so is manah from heaven to them. Not sure the England still in the Euros scenario has any great weight, but any attempt to short at the mo seems doomed. But watching :O)

DOM tend to have a good run before their figures - 23rd July apparently, though i thought it sooner - so selling at lest some in advance may be a good idea ..... however, this time last year, the figures were poor and soft commodities very high, so also be very careful if you intend to short

That's the plan cynic, wait for the figures then make a decision either way.

Domino's is the UK & Ireland operations of the world-leading pizza brand. Domino's outlets are franchised operations.Domino's is a classic example of a roll-out story. Once a retail business can prove itself in one location, massive growth can be achieved by 'rolling out' across more sites.At the end of 2006, Domino's had 407 stores in the UK and Ireland . By the end of 2011, this reached 726. Growing demand for Domino's pizzas has seen turnover increase from £95m to £210m in those five years. In that time, profits have increased threefold as economies of scale have driven margins higher. The shareholder dividend has increased from 3.1p to 12.3p as Domino's matured.It would appear that Domino's growth is not over. A 19.8% increase in eps is forecast for 2012, followed by another 14.4% increase in 2013. Though Domino's is clearly a great company, the shares are no bargain. Using the 2012 consensus forecasts, the shares trade on a forward price-to-earnings (P/E) ratio of 23.9, giving a prospective dividend yield of just 2.7%.