On Saturday 4 April, I highlighted FTSE 250 stock Domino’s Pizza (LSE: DOM) as an attractive UK dividend play. At the time, it was looking cheap and I said it was worth a closer look.

In hindsight, it was indeed worth a closer look, as had someone bought £5,000 worth of shares on Tuesday, 7 April, when the stock market opened after the Easter break, that investment would now be worth about £5,800 – a great result in a little over two weeks!

The strongest growth in 11 quarters

Is the stock still worth a look at current levels? I think so.

Earlier today (23 April), the company posted a trading update for Q1. And while it was brief, it was very encouraging.

For the quarter, total system sales increased by 5.8%, with like‑for‑like growth of 4.5% (its strongest growth in 11 quarters). Meanwhile, total orders rose by 2.3%, with like‑for‑like orders up 0.9%.

In terms of cost management, the company said that its costs are hedged for the current financial year with some costs hedged into 2027. That’s clearly a positive.

As for guidance, the group said that it currently expects to achieve its earnings expectations for the full year. I’m not exactly sure what these expectations are but the market is currently looking for 18p per share in earnings.

We have carried the positive momentum seen at the end of 2025 into 2026, with trading performing in line with our expectations.
Domino’s Pizza CEO Nicola Frampton

Tasty new products

It’s worth noting that on the product front, the company said that it successfully launched ‘CHICK ‘N’ DIP’ during the quarter. Initial trading performance here met expectations with positive feedback from customers.

It also said that it had recently launched its ‘Italianos’ pizza range which is built on a thin crust pizza collection. I think this could be a winner for the company – consumers today are often looking for this type of pizza.

So overall, business performance looks robust. However, there doesn’t seem to be any sign of a major slowdown from GLP-1 weight-loss drugs, which is a future risk.

How’s the valuation?

As for the valuation, the stock still looks cheap. If we take that 18p per share earnings forecast and compare it to the current share price of 201p, we get a forward-looking price-to-earnings (P/E) ratio of just 11.

That strikes me as good value. Especially when you consider the company’s strong brand and high return on capital.

What about the dividend yield?

Zooming in on the dividend yield, it’s still very attractive, despite the recent share price rise. With analysts expecting a payout of 11.1p per share for 2026, we are looking at a yield of around 5.5%.

It’s worth pointing out that dividend coverage (the ratio of earnings per share to dividends per share) is solid at around 1.6. That’s one of the reasons I highlighted the stock a few weeks ago – it has much better dividend coverage than a lot of other high-yield UK stocks.

Put all this together, and there’s a lot to like about Domino’s from an investment perspective. I believe this stock is worthy of further research.