Domino's Pizza, the largest pizza-delivery chain in Ireland and Britain said full-year profit and sales will beat analysts' estimates as a larger advertising budget and speedier deliveries fuel demand.
Domino's shares rose as much as 6 per cent in London trading today.
Sales climbed 13 per cent at outlets open at least 12 months in the current fiscal year's first 16 weeks, the Milton Keynes, England-based company said today in a statement.
Higher sales boost the contribution from each franchised store to the pizza maker's National Advertising Fund, adding to the marketing budget.
Sales growth "was driven by product and marketing innovations and our continuing focus on improving operational standards, and in particular improving delivery times," chairman Stephen Hemsley said in the
statement.
Before today, analysts expected Domino's to earn £21.6 million (€27 million) for the year before taxes
A total of 13 new stores have opened in Ireland and the UK so far in 2008, putting it on course to meet a goal of 50 annual openings. Domino's holds the master franchise for the UK and Ireland from Ann Arbor, Michigan-based Domino's Pizza Inc.
Domino's shares have added 28 per cent this year, the seventh-biggest climb in the 59-company FTSE AIM Travel & Leisure Index. They are on schedule to move to the London Stock Exchange's main market from the Alternative Investment Market on May 19th, Domino's said.