logo-loader
viewDomino's Pizza Group PLC

Domino's Pizza unwanted as Berenberg slashes target and rating

Consumer spending has proved softer than expected while food price rises will impact on the profitability of the group’s franchisees.

picture of Domino's pizza delivery
Growth slowing as rivals catch up

Berenberg has taken another look and become much more bearish on Domino’s Pizza PLC (LON:DOM) than previously, slashing its recommendation and target price accordingly.

Near-term challenges are mounting says the German broker, notably a decline in the performance of its e-commerce offering as its rival have caught and overtaking it in many cases.

Consumer spending has proved softer than expected while food price rises will impact on the profitability of the group’s franchisees.

Costs savings are also taking longer to come through than expected.

“Given the potential internal issues and the possibility of a more subdued external environment, we reduce our 2017E UK lfl growth forecast to 1.5%.”

That sees the share price target drop to 325p from 400p and the recommendation downgraded to ‘hold’.

Shares fell 3.5% to 280.4p.

Quick facts: Domino's Pizza Group PLC

Price: 360 GBX

LSE:DOM
Market: LSE
Market Cap: £1.66 billion
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Genedrive's David Budd details launch of its unique coronavirus test kits...

Genedrive PLC's (LON:GDR) David Budd recaps on its two coronavirus test kits. The first, which was CE marked last week and they're in the process of launching, is a high-throughput lab-based PCR test which assesses whether someone's got an active infection. The second is a point-of-care version...

1 hour, 10 minutes ago

2 min read