Daily Stock Analysis: Domino's Pizza Group

slice pizza with ham toppings

Source: Unsplash 

Domino's Pizza Group PLC has the ticker symbol DPUKY and is a mid-cap member of the consumer cyclical sector as a restaurant firm. This is my first report on Domino's Pizza Group PLC for this Vista folio or any of my other five folios for that matter.

Domino's Pizza Group PLC is a Domino's Pizza franchisee that has the exclusive rights to Domino's restaurants in the United Kingdom, Republic of Ireland, Switzerland, Liechtenstein, and Luxembourg. 

It typically sub franchises its rights to other franchisees who operate the stores in these regions. The company earns royalty revenue on its franchisees' sales. It also pays royalties to Domino's Pizza Inc. 

Other sources of revenue come from subleasing stores and reselling supplies--Domino's Pizza Group leases the stores and then subleases to its franchisees; it also buys all ingredients from suppliers and then sells those supplies to its franchisees.

It operates 1,147 stores in the United Kingdom and 54 stores in the Republic of Ireland. 

The company was formerly known as Domino's Pizza UK & IRL plc and changed its name to Domino's Pizza Group plc in May 2012. 

Domino's Pizza Group plc was founded in 1960 and is headquartered in Milton Keynes, the United Kingdom.

Three key data points gauge dividend equities or funds like Domino's Pizza Group PLC:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether a company has made, is making, and will make money. 

DPUKY Price

Domino's Group's price per share closed at $11.42 Friday. One year ago its price was $8.67.  Thus, the price per share has grown 31.7% as it recovered from last year's Covid market slump. 

Should Domino's Pizza Group PLC  stock trade in the range of $7 to $14.00 this year, its recent $11.42 price might rise by $0.68 to reach $12.10 by May 11, 2022. My estimate is based on the average share price annual increase over the past nine years.

DPUKY Dividends

Domino's Group's most recent semi-annual dividend of $0.25 is payable May 19th and equates to $0.50 annually, and yields 4.42% at yesterday's $11.42 closing price. Domino's Pizza Group PLC has paid variable semi-annual dividends generally increasing annually for 7 years. 

DPUKY Returns

Adding the $0.50 annual Domino's Group forward-looking dividend to my $0.68 price upside estimate shows a $1.18 potential gross gain, per share, to be reduced by any costs to trade the shares.  

If we put a little over $1,000.00 today in Domino's Pizza Group PLC at $11.42 per share, we'd buy 88 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at a sale and might cost us about $0.11 per share.

Subtract that maybe $0.11 brokerage cost from my estimated $1.18 gross gain per share results in a net gain of $1.07 X 88 shares = $94.16 for a 9.4% net gain on a $1,004.96 investment.

Thus, Domino's Pizza Group PLC shows a possible 9.4% net gain including a 4.42% forward-looking dividend yield. 

Over the next year at this time, a $1000 investment in DPUKY could generate $44.20 in cash dividends. And a single share bought at yesterday's closing price was about $11.50! So, if DPUKY is your kind of restaurant investment, Domino's Pizza Group PLC is showing a share price over three times below the expected annual dividend income from $1,000 invested. This suggests now is a good time to add Domino's Pizza Group PLC to your holdings.  

All of the estimates above are speculation based on the past history of Domino's Pizza Group PLC. Only time and money invested in this stock will determine its worth.

 

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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