Thursday newspaper share tips: Take a slice of the Domino's profits

It’s time to order a Domino’ Pizza and take a slice of the profits, according to The Times’ Tempus.

The column noted on Thursday that the pizza company has had a stellar run and it continues to grow. The numbers out on Wednesday showed that the company’s continued investment in digital channels is paying off, as sales in the UK rose 14.9% to £200m.

But Tempus thinks after the latest set of results, as well as a 10% rise in sales for the previous quarter, progress may be a little slower in the fourth quarter as the firm looks to continue to grow the number of stores in the UK. The investment column recommended investors take some profits given the 40% rise in the share price so far this year and the earnings multiple looking hard to justify.

Newspaper and magazine distributor Connect Group was also in the sights of Tempus and The Telegraph’s Questor.

Despite it being described as a “cigar-butt” investment with a declining newspaper distribution market, Questor noted that the company has proven that it can generate steady cash flow. It has adjusted to falling revenue by cutting costs, and is bracing itself for the future as it moves investment from distribution to parcel delivery through its Tufnells acquisition.

However Questor said the tough outlook is reflected in the share price, but trading on eight times forecast earnings and a forecast dividend yield of 6% it is recommending traders hold on to them.

Tempus was much more optimistic about the company. For all the same reasons, it was much more upbeat about the long-term future, especially with its “click and collect” venture with Amazon and with new retailers coming on board. For those reasons it sees the prospect of decent growth and is recommending a long term buy of these shares.