GB : DP Eurasia - Exceptional performance in Turkey, improvements in Russia

Trading momentum has accelerated further in Mar-Apr’21 with system sales LfL growth of +77% in Turkey (vs. +49% in Jan-Feb’21), implying further market share gains reflecting the broad appeal of its value offer, strong innovations and strength of its delivery proposition vs. other QSR players. Performance in Russia also accelerated to +21% LfL (+6.4% in Jan-Feb’21), partly boosted by easy comps. The strong performance has led to increased franchise demand for stores in Turkey, with two new franchisee stores and two transfer of corporate stores to franchisees during Jan-Apr’21 and a further 16 franchisee stores leased. Guidance for FY’21E has been maintained and EBITDA is expected to be in line with market expectations. DP Eurasia’s shares continue to offer deep value, highlighted by the fact that despite having >50% as many Domino’s stores and system sales as Jubilant Foodworks, DP Eurasia has a market cap amounting to only 2.9% of that of Jubilant. Reiterate BUY with 140p TP.

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