Competition intense for Domino's Pizza

Patersons Securities maintains a fair value estimate of $28 on Domino's Pizza.

"It appears the market is assuming a more optimistic store rollout in Japan and Europe than management's targets. Our no-moat rating remains.

"Despite the company's leadership in the fast-casual restaurant category (an 8 per cent share of fast food and a 52 per cent share of the chain pizza segment) we maintain it does not have an economic moat as switching costs for consumers are negligible, competition is intense and barriers to entry are low."

Source: Australian Financial Review   Elise Shaw   June 2nd 2015