- Domino's Pizza Group
- 10 March 2026 11:09:06
Source: Sharecast
The UK master franchise of the American pizza chain reported results for the 52 weeks to 28 December that were broadly in line with expectations, with difficult trading conditions continuing in the second half.
However, the first nine weeks of the new financial year are said to have started with positive momentum, with the board content with current market forecasts for full-year EBITDA.
Shore Capital said it remains neutral on the stock, predicting neither major upside nor downside, despite the valuation still at a discount to sector peers, trading at an EV/EBITDA multiple of 8x compared to the average 12x, at an 11% free cash flow yield on this year's estimates.
"Furthermore, we believe areas such a loyalty and leveraging the strong brand awareness present growth opportunities over the medium term," the broker said.
"However, our 'hold' stance reflects caution over earnings visibility during a period of change of management, and ongoing consumer backdrop headwinds."
The stock was up 4.1% at 194p by 1105 GMT, having now gained over 12% since the start of the year.