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 slow trader spread bet, but an excellent opportunity for the longer term share purchaser. A very consistent company regarding growth and at about 30% of future value, based on past growth, they are a good buy. A turnover of approximately 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 six months down to 17%. Inventory (stock) increased by 75% in their previous report, possibly due to new stores opening in Germany and Switzerland.