Stock to Watch: Domino's Pizza Poland
17.05.12
-Listed shares in DP Poland (DPP) now they have halved to about 65p currently, back near where they started 2011 after floating in July 2010. Raising £6.5 million gross at 50p a share, the company established a market capitalisation near £10 million, so is very much a small cap.
Yet with the exclusive master franchise for Domino's Pizza in Poland, and roll-out proceeding overall to plan, this is a share to watch in 2012.
Opening the 11th and 12th stores in Warsaw has just met the company's target for 2011 and according to last September's interims "many other potential sites [are] under negotiation." In 2008, cafes, restaurants and takeaways in Poland were estimated a £6.5 billion business, and DPP believes the home food delivery market is worth about £286 million in gross sales.
Euromonitor has projected the Polish pizza food service market to grow by 7% in 2011. There are four existing chains: Telepizza, Da Grasso, Pizza Hut and Pizza Dominium, which in mid-2010 had 107,170, 48 and 53 stores respectively. While this begins to have the appearance of a "me too" industry, only Telepizza is part home delivery/takeaway; the others are restaurants.
Source: Interactive Investor