I mean, the speed with which it fell off the cliff, it wasn’t really a bad half that they had, they had a bad – not even a bad month, it seems like they had a bad week at the end of December. Pizza’s are also naturally a good food to deliver, they deliver well.Īnd so, in the sort of fast food delivery space, we thought they had a few advantages, but this result really called that into question and mostly because of the manner of it. We like particularly the fortressing strategy where they build out a very dense network of small stores, relatively small stores, which gives them an advantage in terms of delivery. Management of Domino’s has always been very good, but it has also a lot of things in its favour. Because we’ve previously regarded it as a pretty high quality business, not just because of its management, management is a little bit weak if management’s you’re only reason. JC: And it really gave cause to question the quality of the business and it’s unusual that one result sort of does that. Of course, yes, we’re talking about Domino’s. Sorry, we’re talking about Domino’s Pizza. I mean, look, there are bad results around the place, aren’t there? But this was a howler. JC: I think this was one of the worst results for a couple of years. James, since you were the analyst on probably the crappiest result of the entire season, I thought we might begin with you and we all know what we’re talking about here. So, we’ve each bought around one or two stocks each and I thought we’d do a round robin and just go through them, discuss, ask questions and see what we thought. But I thought today we could just go through some of the important results in a bit more detail. We’ve summarised some of our thoughts in an article on the website, so if you want more detail you can check it out there. Now, the results themselves were pretty good, but I was surprised by the negativity from management and I don’t think the future’s going to look all that good, actually. GW: Mine started off poorly and then got better. JC: It was horrible, I’ve got to say, it was one of the worst I’ve had for a while. Gentlemen, we’ve just finished reporting season, it was one of the more difficult reporting seasons that I’ve come across over the last few years, I don’t know about you guys… G’day, James.Īnd with also from Vancouver is Graham – and Graham’s an analyst too for those who don’t know. Welcome to Stock Take, my name’s Gaurav and joining me today is analyst, James Carlisle.
It is general advice only and does not take your personal situation into account. The information in this podcast is current on the day of recording. Whether you're a seasoned investor or new to the game, our analysts will keep you entertained as they navigate the ups and downs of the Aussie share market with their unique insights and musings. Stock Take is a podcast by the Intelligent Investor analyst team with a focus on value investing and ASX-listed securities.
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