The Domino's Pizza Enterprises Ltd. (ASX: DMP) share price went up around 11% today after its half-year result really impressed investors.
Domino's profit numbers
Domino's said that network sales were up 10.6% to $1.58 billion and online sales increased by 18.8% to $1.11 billion. Same store sale growth came in at 4.1%.
Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 10% to $151 million, underlying net profit rose by 6.4% to $72.6 million and underlying earnings per share (EPS) increased by 6.1%.
Free cash flow jumped by 59.3% to $58.2 million and the dividend was increased by 6.4% to 62.7 cents per share.
Japan was a particular highlight with sales rising 12.2% on same store sales growth of 6.1% and EBITDA going up by 10.6%. Europe also saw strong growth with sales rising 9.4% on same store sale growth of 5% with EBITDA growing 15.6%. ANZ was solid with sales rising 3.5% on 3% same store sales growth, however EBITDA only increased 1.7% with a focus on lower-priced products.
The company still expects more growth in the rest of the year with FY20 same store sale growth of 6.3% in the first few years. 11 more stores have been opened in the second half with more planned.
Is Domino's a buy?
The pizza giant continues to grow its business at an impressive rate. Europe is a very large market for the growth-focused company, it has quite a long runway there.
The share price has gone up by 43% over the past six months, it's probably at a point where I would want to wait and see for a dip in the price. It's trading at over 31x FY21's estimated earnings, which is fairly hefty for a food business.
