Domino’s shares at record high on big sales in Ireland, UK

Fast-food chain Domino’s Pizza, which owns 47 outlets locally, has reported like-for-like sales in the Republic of Ireland for the third quarter that were up 14.1 per cent compared to the same period a year ago.

The group said it expects full-year results to be ahead of expectations after a surge in online sales boosted revenues in both Ireland and the UK.

Domino’s said third quarter Irish system sales totalled €13.8 million versus €12.2 million for the same period last year. Year-to-date system sales were up 9 per cent to €40.9 million as against €37.6 million for the corresponding period in 2014.

“We are very encouraged by the third quarter results in Ireland where we are also seeing an increasing trend towards digital ordering and the benefits of the continued economic recovery,” the group said.

Shares in the company jumped more than 14 per cent to a record high of 1016 pence in London where it was the top gainer on the FTSE-250 midcap index in early trading.

The group, which has 800 stores in the UK and also hs operations in Switzerland and Germany, said third quarter UK like-for-like sales were up 14.9 per cent with system sales totalling £200 million versus £165.7 million a year. year-to-date system sales in the UK were £597 million, up 17 per cent from the £510 million recorded for the same period in 2014.

Revenue through digital channels in the UK was 35 per cent ahead of the third quarter in 2014 and more than 75 per cent of delivered sales in the year-to-date have been online in the UK, with more than half of thse placed through its dedicated mobile app.

The group is on course to open a minimum of 50 stores in the UK this year, it said.

"We are delighted by this performance as our UK business goes from strength to strength, reflecting the success of our strategic and marketing initiatives. It represents the eighth consecutive quarter of double digit like-for-like sales growth as we continue to focus on delivering great food with great service, using our best in class digital platforms. Our international businesses also continue to show encouraging signs of improvement," said chief executive David Wild.

“We enter the final quarter of the year with good momentum, are confident of beating our previous expectations for the full year and remain excited about our longer term growth prospects,” he added.