Domino’s roll-out bites
Taste results were painful to behold as the costs of Domino’s Pizza roll-outs hit the company. Ironically jewellery helped lift the numbers (ironic as I always felt jewellery was a misfit here) and Taste has burnt through most of the cash it raised in 2014. (It raised R180m at 300c a share. At the time of writing, the company was trading at 255c.) In the 2016 financial year, it invested R183.4m, with further capital expenditure and investments of R69m approved for the 2017 financial year. Taste now needs to manage the cash carefully, rolling out new stores. Hopefully we’ll start to see revenue and profits being able to fund most of the roll-out of new stores, including Starbucks. As I have been saying for a while, it’s going to be a long and potentially bumpy road for shareholders.