Domino's serves up sales rise
Domino’s Pizza today reported a fresh rise in sales as consumers opted to dine at home during the current economic turmoil.
The delivery firm, which operates a network of franchised stores in Ireland and the UK, said like-for-like sales at its 449 mature stores rose 8.8% in the 13 weeks to September 28, although this was lower than a 14% rise a year ago.
Domino’s opened nine stores during the period and is on track to hit its full-year target of 50 new openings.
Chief executive Chris Moore said: “Trading in the third quarter has continued strongly and is particularly encouraging given the strong comparatives during the same period last year.
“We are very pleased with the momentum in the business and the resilience of our business model during these more challenging economic times.”
Domino's trades from 535 stores in the UK, but has plans to increase this figure to 1,000 by 2017.
The company holds the master franchise to own, operate and franchise Domino’s Pizza stores in the Republic of Ireland and the UK.
Its first UK store opened in 1985 and the first Irish store opened in 1991.
The majority of its outlets are owned by franchisees.
James Cooke, an analyst at Panmure Gordon stockbrokers, said today’s third quarter trading update left Domino’s on course to meet – or possibly exceed - market expectations for full year results.
He added: “Despite the slowing of the economy and squeeze on consumer spending, Domino’s Pizza continues to see organic growth in the business.
“We believe that this is due to strong consumer awareness of the brand – from high profile advertising and media campaigns – strong value for money focus and a shift from consumers eating pizza out of the home to in the home.”
