Domino’s Pizza stocks rose after the group promised to give £ 88 million to investors through buybacks and dividends.
Sales skyrocketed over the past year as people turned to take-away bans and social distancing restrictions and restaurants closed for months.
It added 5 million customers, many of whom believe they will keep ordering after the pandemic passes, and order sizes increased 10 percent on average as people indulged in more.
Lockdown Winner: Domino’s pizza sales soared over the past year as people turned to takeaway restaurants for months after lockdowns and social distancing restrictions
Revenue rose 11 percent to £ 1.35 billion by December 27, and profit rose 200 percent to £ 56 million.
And the company now plans to share some of the increase in home sales with its backers through a £ 45 million share buyback program and a 9.1p dividend that will cost £ 43 million.
That would be welcomed by investors anytime, but is especially the case now after dozens of large corporations cut their payouts over the past year and savers, stockbrokers and retirees starved for normally dependable additional income.
Stock Watch – Genedrive
Diagnostic group Genedrive has signed a contract with a US military contractor to supply a kit that can be used to quickly test for dangerous pathogens.
By working with Mountain Horse Solutions, Manchester-based Genedrive can bypass the so-called “challenging and time-consuming” process of contracting directly with the US government.
The BioPlex products can be used if biological attacks are suspected.
Shares rose 1.1 percent, or 1.5p, to 135p yesterday.
Domino’s plans to capitalize on last year’s success as one of the “lockdown winners”. It is expected that an additional 7,000 employees will be hired and another 200 locations will be opened. A widespread drive-through service is also in the works to support the sale of collections.
A gap between the company and its franchisees should be closed – but nothing has been finalized and talks are ongoing.
Skeptics may wonder how long the takeaway boom can last when restaurants and bars reopen.
Many of Domino’s busiest days in 2020 were party events like Halloween and Christmas, and after the fiscal year ended, New Year’s Eve was the busiest day ever, with an average of 14 pizzas sold per second.
But there was ample appetite for the group’s stock yesterday, which closed 8.6 percent, or 26.8 pence, at 337.2 pence.
Baggage handler and aircraft handler John Menzies Group was also in demand as the market exceeded a loss of £ 120.5m and predicted it will not fully recover over the next two years.
Airport Services Group, which posted a profit of £ 18 million last year, saw sales decline by more than a third.
However, stocks rose 2.1 percent, or 5p, to 240p as they would focus more on freight operations, which were less affected by the air traffic slump during Covid.
Covent Garden landlord, Capital & Counties, fell out of favor, falling 1.7 percent, or 2.9 pence, to 169.2 pence.
The value of his property portfolio in central London’s shopping and theater districts fell 26 percent to £ 1.9 billion last year as retail and restaurant tenants’ rents were impacted by three lockdowns.
The FTSE 100 rose marginally 0.2 percent, or 11.21 points, to 6,730.34, holding back a decline in miners, including Anglo American (minus 4.4 percent or 133 pence to 2,885.5 pence) and Rio Tinto (minus 3.7 percent). or 221p to 5819p) and Evraz (minus 2.7 percent or 16.2p to 583.6p).
Cairn Energy fell 3 percent, or 5.9 pence, to 192.8 pence as two deals were unveiled alongside bloody numbers for the full year.
The company will sell its stake in two North Sea oil fields for £ 331 million and spend £ 233 million on purchases of assets in Egypt from Shell (down 0.1 percent or 0.8 pence to 1,487 pence).
After rising above $ 71 a barrel on Monday after an attack on key infrastructure in Saudi Arabia, oil prices were back below $ 68 last night. The surge had brought Brent crude to its highest level since May 2019.
Harry Potter publisher Bloomsbury rose 5 percent, or 13 pence, to 273 pence after Peel Hunt brokers upgraded their stock’s rating from “hold” to “add”. They believe a drop in stocks last month “is undeserved” given the strong series of Covid updates.
The FTSE 250 rose 0.81 percent or 172.25 points to 21382.47 points.
Some of the links in this article may be affiliate links. If you click on it, we may receive a small commission. This helps us fund This Is Money and use it for free. We do not write articles to promote products. We do not allow any business relationship that would affect our editorial independence.