Last week, Domino’s has announced an Everyday value offer (EDVO) on regular sized pizza starting at Rs 99 each aimed at small group sizes of 2 customers.
The company said the Everyday Value price will help Domino's Pizza in increasing pizza penetration across markets, especially in smaller towns. It will also help existing Domino's customers to enjoy Domino's pizzas more often and on more occasions, thus driving increased frequency of consumption.
Management initiatives continue to increase same-store sales growth (SSG) and margins visibility. Acceleration in store expansion, improvement in mobile ordering app and dining experience could be additional growth drivers in future, according to analysts at Emkay Global Financial Services.
Extension of EDVO, recent pricing action and benign competitive environment provide strong SSG visibility. We also increase our margins assumptions factoring continued costs savings, likely upsides from reduction in rentals, and lower losses of Dunkin Donuts, the brokerage firm said company update. The stock was however trading above its 12-month target price of Rs 2,300.
At 12:27 pm; Jubilant FoodWorks was trading 3% higher at Rs 2,345, as compared to 0.23% rise in the S&P BSE Sensex. The trading volumes on the counter surged more than four-fold with a combined 1.76 million shares changed hands on the BSE and NSE so far.