Domino's Pizza's Guidance Miss Raises Overly Cautious Scepticism

Domino's Pizza on Sale as Investors Ignore the Long-Term Potential

Domino's Pizza Enterprises Remains Undervalued Following Strong European Start to Fiscal 2018

Leading Independent Investment Research, Morningstar, Inc.

Morningstar

Leading Independent Investment Research

Morningstar, Inc.

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. We offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. 

Morningstar provides data on more than 500,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 16 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries, with more than $180 billion in assets under advisement or management as of June 30, 2015. We have operations in 27 countries.

Download the Morningstar Fact Sheet : http://corporate.morningstar.com/US/documents/MarketingFactSheets/AboutMorningstarFactsheet.pdf

Equity Bottom-Up

Domino's Pizza Enterprises / Equity Bottom-Up

We have reviewed our modelling assumption for narrow moat-rated Domino’s Pizza Enterprises following a change in analyst. Our fair value estimate has increased to AUD 60 per share from AUD 58 per share. Shares in Domino's are trading broadly in line with our intrinsic assessment, offering a dividend yield of 1.7%.Domino’s is the leader in the Australian and New Zealand pizza market with 35% share, and enjoys a strong brand internationally. We maintain our narrow moat rating on Domino’s, stemming from its brand recognition and cost advantages associated with its scale. Further, we believe the company’s emphasis on improving its digital platform and technological innovations reinforces its leadership in customer convenience. Over the forecast period, we expect the earnings to grow significantly, driven by an aggressive store roll out program across all regions, solid like-for-like growth, and an expansion in EBITDA margins. We estimate EPS to grow by a CAGR of 24.1% over the next five years.Same-store sales growth has been impressive in the last few years, especially in Australia and New Zealand, or ANZ, where same store sales grew by an average 11% per year between fiscal 2013 and fiscal 2016. The growth rate accelerated over the three-year period and same store sales growth is projected by management to be 14%-16% in fiscal 2017.Analyst: Johannes Faul, CFA

We have reviewed our modelling assumption for narrow moat-rated Domino’s Pizza Enterprises following a change in analyst. Our fair value estimate has increased to AUD 60 per share from AUD 58 per share. Shares in Domino's are trading broadly in line with our intrinsic assessment, offering a dividend yield of 1.7%.Domino’s is the leader in the Australian and New Zealand pizza market with 35% share, and enjoys a strong brand internationally. We maintain our narrow moat rating on Domino’s, stemming from its brand recognition and cost advantages associated with its scale. Further, we believe the company’s emphasis on improving its digital platform and technological innovations reinforces its leadership in customer convenience. Over the forecast period, we expect the earnings to grow significantly, driven by an aggressive store roll out program across all regions, solid like-for-like growth, and an expansion in EBITDA margins. We estimate EPS to grow by a CAGR of 24.1% over the next five years.Same-store sales growth has been impressive in the last few years, especially in Australia and New Zealand, or ANZ, where same store sales grew by an average 11% per year between fiscal 2013 and fiscal 2016. The growth rate accelerated over the three-year period and same store sales growth is projected by management to be 14%-16% in fiscal 2017.Analyst: Johannes Faul, CFA

도미노피자의 강력한 성장은 경쟁 우위에 힘입은 결과입니다. FVE는 AUD 60으로 상향 조정되었습니다.