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.
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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Domino's Pizza Enterprises Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.