Broker snap: Domino's impresses with winter sales

5th Jan 2011 12:31

Domino's Pizza's fourth quarter sales exceeded Peel Hunt's forecasts, as the group dealt with the snow disruption better than expected.The pizza delivery firm saw like-for-like (LFL) sales in the final period grow by 10.3% whereas the broker expected the bad weather to produce a figure lower than third quarter LFL of 9.9%.Analyst Paul Hickman says Domino's still justifies its high rating of 28 times projected 2011 earnings. "We regard Domino's as one of the best managed marketing-led operations in the UK today and a core holding for any consumer-facing investment portfolio."Profit and earnings figures are revised upwards, as the broker confirms a 'buy' rating and 600p target price.