Shares digital

Domino’s Pizza (DOM:AIM) – Finals PTP: £18.6m (£14.2m) Divi: 2.5p (1.76p)

Having shunned the leisure downturn, the fast food retailer continues to impress the market with strong trading. Profit for 2007 was ahead of expectations and like-for-like trading in the first six weeks of 2008 is ahead by 11%.

Pizza prices have gone up by 4% to cover food price inflation but this has turned out to be more than adequate. Domino’s has fixed flour costs for the year at a lower level than originally estimated. Cheese costs have also eased recently, giving it some margin to allow for any price pressures later on.

Its £18 million advertising pot, funded by franchisees, is supporting major television sponsorship of two high-profile talent shows on ITV. Promotions have historically fed directly through to a rise in sales. It will move to the main market in Q2.

Shares says: It continues to surprise on the upside. The results confirm its solid position.

by: Dan Coatsworth