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DMP - Domino's Pizza Enterprises

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Re: Domino's Pizza?

Speaking of Domino's Pizza, I just recieved in the piles of junk mail to hit my mail-box a voucher for a large pizza @ $3.95. Correct me if I am wrong, but they must be giving them away at these price. The cost of labour, electricity,food, franchise costs and GST to produce this pizza must far outway any profit. I am putting my dough back in my pocket on this stock and giving Domino's a thumbs down for investors.

Disclamer (to cover my ****) : I DO NOT HOLD THIS STOCK
 
Re: Domino's Pizza?

Knobby22 said:
Did you buy the pizza though?
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Not at this stage, but have kept the voucher and may use it this weekend. I see where you are heading though.

Your comment in reply would be, they have got you in the door with a cheap pizza, then as a consumer I will also order an extra pizza, a couple of garlic breads and a few litres of coke....and bingo....an orginal purchase of $3.95 turns into $15 to $20

and my comment in reply would be..... no I am not that stupid to fall for the up-selling thing. I would be happy to walk out the door with a $3.95 pizza and be on my way.
 
Re: Domino's Pizza?

I read an article some days ago and I remember seeing that the cost to make a pizza for Domino's is like $2.50. So they are always!! making a profit, believe me that.

WBII
 
Re: Domino's Pizza?

krisbarry said:
Not at this stage, but have kept the voucher and may use it this weekend. I see where you are heading though.

Your comment in reply would be, they have got you in the door with a cheap pizza, then as a consumer I will also order an extra pizza, a couple of garlic breads and a few litres of coke....and bingo....an orginal purchase of $3.95 turns into $15 to $20

and my comment in reply would be..... no I am not that stupid to fall for the up-selling thing. I would be happy to walk out the door with a $3.95 pizza and be on my way.
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You may not use it because you're a savvy customer but most people are not, in fact I'm just having one now!! It's the convenience and consistent quality and service imo that separates it. Also saw some poor teenager running around the train station with a dominoe's sandwich board advertising a lunctime special- I like proactive marketing. But it still needs to be given the once over as any company should be. I like the fact that it runs a no frills operation. I'll be checking out the charts and future broker reviews, everyone loves pizza, even when the economy is doing badly!!
 
Re: Domino's Pizza?

All the Pizza stores are ripping everyone off. It's cheap to make a pizza, and if it's cheap to buy them people will keep coming back. The marketing is focussed on repeat service not one time service. One customer could potentially spend a lot of money each year.

Dominoes is my choice because they have the best pizzzas, and the best service. Go to pizza hut and it will cost you more, good pizzas, but too expensive.

I don't hold this stock!
 
Re: DMP Domino's Pizza?

A chart of one great performer, looks like it's making a move again but has some resistance to overcome.

Looks like we took our eye of this one, eh Snake? ;)
 

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Re: DMP Domino's Pizza?

Eagle boys would be my pizza of choice. They seem to do extremely well too. Not flashy, but good quality and cheap. Dont think they are listed though.
 
Re: DMP - Domino's Pizza

Anyone still covering dominos?

The companies growth prospects look excellent with significant growth potential in the european pizza market and good results so far. Anyone know when they pay down the debt from the aquisition will they buy more stores? go for organic growth? or return some money as dividends?

I'm not sure if the SP will keep increasing past the current 3.50 a share, would appreciate a chart guru analysing the graph or even another opinion on DMP. Thanks in advance.

Disclosure: I own shares in dominos.
 
Re: DMP - Domino's Pizza

Jochi said:
Anyone still covering dominos?

The companies growth prospects look excellent with significant growth potential in the european pizza market and good results so far. Anyone know when they pay down the debt from the aquisition will they buy more stores? go for organic growth? or return some money as dividends?

I'm not sure if the SP will keep increasing past the current 3.50 a share, would appreciate a chart guru analysing the graph or even another opinion on DMP. Thanks in advance.

Disclosure: I own shares in dominos.
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I got DMP :) got in at $2.27 and still holding when everyone bailed out, I like this sort of boring stock where I understand the business and eats domino's all the time :D ...

don't underestimate the bargain price of a pizza, even though it may not be the best pizza :) .. I been in situation where 50 cents differences I have to buy the cheaper good :D so I know the power of a cheap pizza and food.
 
Re: DMP - Domino's Pizza

Is anyone covering Dominos?

I hold and am happy to continue, been on the up since I bought in at $2.96.
 
Re: DMP - Domino's Pizza

olharryboy said:
Is anyone covering Dominos?

I hold and am happy to continue, been on the up since I bought in at $2.96.
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I cover it and I hold :) more upside to go, great cash flow ...good use of technology to drive sales and decent management
 
Re: DMP - Domino's Pizza

Had no idea Dominoes were even listed however I think you may be right about more upside to go, I run codes through an online program just to check the TAs, says a 72% probability of advancing, 15 bullish, 1 bear, I'd option call it myself, cepting this ones not available for options in the asx. won't be buying it myself, could only buy a couple of hundred shares if I did. Missed the gravy train 4 years ago lol. Good luck with it :D

Not holding anything and not a financial fella.
Not endorsing the program I mentioned either, it just one I use to check my own TA
 
Re: DMP - Domino's Pizza

ROE said:
I cover it and I hold :) more upside to go, great cash flow ...good use of technology to drive sales and decent management
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Will be happy with another stellar profit result today.

I have seen the CEO on SkyBusiness and he seems very driven and knowledgeable and also realistic
 
Re: DMP - Domino's Pizza

$9.65, are you kidding me??
What happened to all those people at the IPO who said no one would eat pizza because it was unhealthy?!?!?!?
 
Re: DMP - Domino's Pizza

there online ordering is pretty good, probably one of the most succesful online intergrations by any aus company. big thumbs up for the pizza tracker on the phone !
 
Re: DMP - Domino's Pizza

DMP is doing pretty good but the share price is pretty full imho. They have strong cash flow and high ROE so the question is whether the EPS growth can continue.

P.S. I've upgraded my pizza consumption to Pizza Capers these days...
 
Re: DMP - Domino's Pizza

DMP's profitability amazes me. They're expensive, small and average quality (I guess good for chain pizza). They have done very well in making it so easy to order from them though, which I guess is where their advantage lies.
 
Re: DMP - Domino's Pizza

Keep in mind a massive source of the high returns on equity is the fact that they run franchises, they build up the stores then sell them off recouping their capital costs, collecting royalties (a dollar or two) from every pizza sold in exchange for ongoing support/ordering/group advertising. I would imagine that owning a franchised dominoes outlet would have a lower return on equity than the companies high return on equity revenues.

To me dominos pizza is a decent quality pizza for a decent price (on special anyway). A whole pizza is good for 1.5 meals usually and costs around 6-7 bucks so there is some value proposition there. The move to become dominant at ordering online is a massive boost as well imo.

The main source of growth for the company in the next 5 years seems to me to be the European market, as the Australian/New Zealand market reaches saturation.
 
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