SIMON FRENCH PANMURE GORDON
The group’s German expansion has hit its first speed bump with corporate stores performing below expectations...The performance of the UK business in the second quarter is ahead of expectations reporting 6.1 per cent like-for-like sales growth, although the rate of new openings is disappointing.
NICK BATRAM PEEL HUNT
The disappointing performance in Germany will undoubtedly hurt management credibility and we expect the shares to react accordingly...In the short term the UK outperformance will be insufficient to offset the pain in Germany, and our initial thoughts are we will have to cut our profit forecast by around £1-1.5m.
WAYNE BROWN CANACCORD GENUITY
Domino’s has issued a mixed trading update leading to downgrades of around four per cent to our forecasts. We expect growth in Germany to be much more muted than originally anticipated as the business will take time to build consumer confidence, build brand awareness and educate the market.