Domino's UK share price: Here's what you need to know about the company's booming profits, share price and expanded share repurchase
Popular American pizza company Domino’s has posted its UK and Ireland earnings for the first half of 2021, with rising profits seeing the fast food firm’s share price booming.
Domino’s Pizza Group UK have posted its latest batch of earnings for the first half of 2021, with results for the second quarter of the year showing the pizza giant’s profits in the UK and Ireland climbing along with its share price.
Here’s everything you need to know about the pizza giant’s share price today and what an expanded share buyback scheme means for Domino’s.
What is Domino’s share price today?
Domino's Pizza Group PLC is trading on the London Stock Exchange today (August 3) at 434.20 points as of 11.30am after opening at 429.60 this morning.
This marks the biggest share price for the American company’s UK subsidiary so far this year, with the company seeing a previous year-to-date high in share price of 391.60 points earlier this year on May 12.
How much did Domino’s make in the first half of 2021?
The company’s spike in its stock price comes as its half-year earnings report noted the reduction of its net debt by 12.7% on last year and posted statutory post-tax profit of £41.3 million – up from £19 million on the previous year.
Aided by the reduction of VAT and Covid-19 economic relief measures put into place by the UK Government in last year’s Budget, like-for-like system sale were up 19.3%.
The company announced the expansion of their share repurchase scheme for investors as a result of its success, with the full year for 2021 set to see £136million in surplus capital to be returned to shareholders through boosted dividends and buybacks.
Domino’s have now boosted their existing £45 million buyback programme with a further £35 million as growth surpassed expectations for the company.
System sales in the 26 weeks ending June 27 2021 were up by 19.6% on the previous year, with 2021’s sales coming in at a whopping £752.3 million compared to 2020’s £752.3 million for the same period.
With an underlying profit before tax of £60.7 million, Domino’s likewise saw an almost 30% hike in year-on-year profit during this period as it soared above the £47.6 million pre-tax profit seen in the 26 weeks to June 28 2020.
What’s next for Domino’s?
Domino’s are set to continue growing their fast food empire across the United Kingdom and Ireland, with 13 new franchised stores opening in the first half of 2021 as the firm looks to achieve its target of opening 30 new stores this year.
The company has also sought to strengthen its supply chain by opening a new supply centre in Cambuslang, Glasgow in April, with the chain later launching a Scottish recruitment drive in June of this year.
Dominic Paul, chief executive officer of Domino’s Pizza Group UK and Ireland Ltd, said: “I am delighted with the performance of the business in the year to date. “We’ve worked closely with our franchisees to maintain fantastic service levels to our customers, while continuing to prioritise the safety of our colleagues and customers. I’d like to thank everyone in the system for their incredible commitment through the pandemic.
“We have continued to invest in the business as we focus on delivering our strategy with the opening of a new state of the art supply chain centre in Scotland, the launch of our redesigned mobile ordering App, and the roll out of our supercharged marketing campaign which has strengthened our brand and significantly boosted awareness levels.
Mr Paul added: "The strong trading in the first half of the year provides us with the firm foundations for the delivery of our strategic growth objectives, which build upon our strengths in both delivery and collection. This will enable us to deliver strong system sales growth and increase our store numbers in the UK and Ireland.”
“Whilst the external landscape remains uncertain, the second half has started well. I believe our agile business model leaves us well placed to capitalise on the significant opportunities ahead while continuing to invest in our strategy, which will deliver benefits for franchisees and shareholders alike.”