BUZZ-Domino's Pizza, Just Eat: defying post-Brexit gloom

martes 26 de julio de 2016 10:30 GYT

** Domino's Pizza hits a record high on Tuesday whilst fellow food delivery focused outfit Just Eat at its highest levels since January

** Both DOM and JE report H1 on July 28

** Recession proof: Domino's +11% from pre-Brexit levels, Just Eat +6.6%; when times are tight, people shun restaurants in favour of takeaways e.g. DOM in 2008/2009 saw positive LfL sales

** UK represents lion's share of Just Eat's profit, but much of its investment case rests on overseas growth (unaffected by Brexit); e.g. Brazil where enjoying strong growth

** AllianzGI's Matthew Hall bought more Just Eat shares earlier in the year; not concerned about JE in post Brexit environment - given takeaway's tendency to be resilient and biz is net cash (not got a large amount of debt)

** PM deemed fears over delivery network Deliveroo, which hampered JE performance start 2016, overreaction

** JE has 'delivered' model (restaurants deliver food themselves) v operators like Deliveroo, Uber, Amazon which are Logistics platforms; avg order for Logistics ~50% higher, Barclays ests (from early 2016)

** JE on different scale; it serves the mass market while Deliveroo focuses on more upmarket food (RM: