Domino”s Pizza UK & IRL plc (DOM)

The UK’s leading pizza delivery company, Domino’s has been a favourite for some time. Whether you eat the product or not – just ask a university student what they order in – it is still a simple and profitable business model. From a high of nearly £7 a few months ago they dropped to £5.50 and are presently available at about £6. Not yet trending for a slowtrader spread bet, but a great opportunity for the longer term share purchaser. A very consistent company in terms of growth and at about 30% of future value, based on past growth, they are a good buy. A turnover of about 241 million, that is a lot of dough! Very little debt, and few overhead costs with no R&D. So what they earn goes to the bottom line. Operating margin has been 19%, with the last 6 months down to 17%. Inventory (stock) increased by 75% in their last report, possibly due to new stores opening in Germany and Switzerland.

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