Dominos Pizza acquisition in France

Domino's (DMP) has announced the acquisition of an independent Western France pizza chain for EUR31.5m, increasing DMP's store count in the country by ~30% (to 330). Today's acquisition massively fast-forwards European growth (3/4 years worth of store rollout) and we now see the likelihood of FY17 being a massive growth year given: 1. new commissary in France coming online (efficiencies); 2.PULSE rollout in France/Japan; 3. Sprint acquisition annualised; and 4. the significant organic growth within the base business. We are really going to see the scale benefits coming through from Europe in the next 12 months. The stock is trading on around 40x, offering EPS growth north of 30% (vs guidance of 20%), so a PEG of 1.3x...which is similar (or even cheaper) than other high growth, global businesses. This is by far and away the best growth stock we cover and plenty of near term catalysts (AGM trading update in three weeks which we expect will be very strong and further acquisition optionality). Add maintained. Click the (VIEW LINK) to access our blog.