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Domino's shares hit record high

AAP logoAAP 17/08/2016

Domino's share price has soared to a new high a day after the fast food retailer outlined an aggressive expansion plan and another record annual profit.

The share price hit $80.10 at the close on Wednesday, the eight per cent lift taking the stock to almost double its $42.28 value a year ago.

The pizza delivery giant posted a 28.7 per cent increase in 2015/16 net profit to $82.4 million on Tuesday and unveiled a nine-year plan to almost double its store count in Australia and New Zealand to 1,200.

Domino's had forecast underlying net profit to grow 30 per cent in 2016/17 but analysts believe the company will do better than that.

Deutsche Bank analysts have forecast Domino's underlying net profit to jump 37.4 per cent to $126.5 million in the 2017 financial year.

"The group has a strong record of upgrading guidance through the year and we expect this year will be no different," Deutsche Bank's team said in a report on Wednesday.

Bell Potter analysts said Domino's had impressive same store sales growth, including 14.8 per cent from its Australian and New Zealand stores in 2015/16 and were equally confident in the retailer's future performance.

It a note, Bell Potter said the company's focus on lower delivery times, including under 10 minutes, will in the medium-term, add "significant fuel to grow market share" in Australia's $20 billion plus quick service restaurant sector.

Domino's is chasing more market share outside pizza by expanding its range of side dishes, having added chicken pieces and a broad range of desserts in recent years.

Mr Meij said on Tuesday Domino's was picking up a significant percentage of orders that were just for its sides and that the company would unveil its biggest menu overhaul next month.

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