Domino’s roll-out bites

Finweek English Edition - - MARKETPLACE -

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.

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