Shares digital

Domino’s Pizza (DOM:AIM) 216p

Like-for-like sales during the Christmas period increased 17.6%, as more customers used the internet to order pizzas. (Read the full story: www.sharesmagazine.com/node/2804)

Shares says: Yet another pleasant performance from the fast food group. It did well in the summer off the back of wet weather. Now that consumers are short of cash because of high interest rates and the credit crunch, Domino’s seems like a more affordable treat than going out for a meal. Should do well if the leisure sector market conditions stay weaker, as its products are seen as cheaper alternatives to restaurants but still decent quality. BUY

The Times says: The trading statement showed that the pizza delivery chain appears to be insulated from the ills of the rest of the high street. Ordering fast food online has come of age: e-commerce sales were up 102% over Christmas and now account for 20% of the total. That performance makes the company’s projection of securing one-third of sales online by 2015 look too low. Looks the right time to reinvest in a company with minimal debt, a dominant market position and scope to beat forecasts of a 16% rise in current-year earnings. BUY

The City - Altium says: In addition to sales growth, the rate of new store openings is speeding up to 30 in the first half, from 20 in the previous six months. In response to higher food input prices, franchisees have been lifting selling prices by around 3.5%, which has had no impact on volumes. It is likely that these price increases will now more than accommodate food price inflation, which we do not see as a major issue for Domino’s. BUY

The City - Dresdner Kleinwort says: It is improving on delivery times, new product launches are planned and the internet sales are increasing. Like-for-like sales in the last six weeks of 2007 grew by 17.6% despite the tough comparative of 13.1% growth in the same period a year before. We attribute such strength to Domino’s industry-leading business model. BUY