target price $40, page-21

You make a valid point about input costs. The most significant input cost facing DMP, however, is energy and utility costs - in particular in Europe which are soaring. The strategy management has outlined is the use of electric bikes for deliveries in Europe which is proving successful according to management.

In terms of wheat and other ingredient input costs, the Don has made it clear that the strategy being implemented is to bring out new ranges of higher-priced premium products which will allow the group to offset the higher cost of inputs such as wheat, cheese and meat, but still make the customer feel as though they are getting value. The Don refers to this as a “More for More” approach (and upsizing meal offerings to enable it to retrieve the cost of rising food prices, and energy prices). Very clever imho. These new “Premium Costs pizzas” are $3.45 more expensive and apparently proving to be popular.