Domino's Pizza Group is trying to turn years of investment in stores, digital capability and supply-chain capacity into stronger cash generation.
The supplied source says Panmure Liberum maintained a Buy rating on the UK-listed company and a 300p target price.
The broker's thesis is built on order growth rather than price increases.
Domino's has expanded its store base and infrastructure faster than orders grew, which weakened orders per store and profit conversion. The recovery plan is designed to increase volumes through the existing network.
Four growth levers are highlighted: CHICK 'N' DIP, loyalty, aggregators and product innovation.
At the same time, automation and supply-chain projects are intended to reduce labor, handling and delivery costs.
Panmure expects EBITDA drop-through to improve from about 13% in 2026 to the mid-20s in 2027 and 2028.
The cash-flow forecast is the most important part of the thesis. Free cash flow after capital expenditure is expected to rise from £51.5 million in 2026 to £65.2 million in 2027 and £74.7 million in 2028.
Supply-chain productivity is a major swing factor. The company has 14 productivity projects planned through 2028, with seven expected to be completed in 2026.
The program targets roughly 280,000 annual labor hours of savings by 2028, which the broker estimates could add £3 million to £4 million to EBITDA.
The risks are equally clear. Structural order growth could remain weak, loyalty and aggregator costs can dilute the benefit of higher volumes, and wage inflation could absorb automation savings.
The company also faces a £200 million debt refinancing due in July 2027.
What investors should watch: order growth, free-cash-flow conversion, supply-chain savings, aggregator economics, wage inflation and progress on the 2027 refinancing.
BTI's bottom line: the Domino's Pizza Group thesis now depends on converting existing infrastructure into higher utilization and cash flow. If order growth improves while capex normalizes, operating leverage can become much more visible.