25 May 2012

Polish love pizza

27/10/2011 Ben Jaglom

Polish Domino's Pizza franchisee DP Poland has opened its seventh store in Warsaw, the capital of Poland.

The AIM-quoted concern, which joined the junior market last July at 50p in a float that raised £6.5 million, opened the store on what it says is a 'highly visible location' on a main road just south of the city centre. Chief executive Peter Shaw describes the opening as helping to consolidate the company's presence in Warsaw on what he describes as a 'major commuter route between the city centre and the central business district'.

Investors may be surprised to discover that DP is in fact one of three Domino's-related companies to be listed. As well as Domino's Pizza UK itself there is also the AIM minnow and Swiss franchisee Global Brands, which recently posted an update in which it declared that it had decided not to convert a third Pizza Taxi store - the brand it acquired last year- and had for reasons that remain unclear decided to 'terminate the franchise agreement'.

Growth Company Investor recommended the shares at the float price of 50p and they hit a high of 120p earlier in the year before slipping to the current price of 80.5p. The company has a number of strong drivers which include the fact that Poland lacks an Italian immigrant community or large-scale network of pizza delivery outlets with which to compete with while the country itself is displaying impressive growth (Poland is not in the Eurozone) with its middle class in particular expanding. We retain our buy rating.

Tags: Doing business with the Polish, Domino's Pizza, Eastern Europen on AIM, Investing in Eastern Europe, Investing in Poland, Listed Domino's companies, New Issues on AIM

Sector: Travel & Leisure

Companies: DP Poland

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