Home delivery firm Domino’s Pizza today said its sponsorship of hit TV show Britain’s Got Talent helped drive a double-digit increase in sales and profits.
The group, which has sponsored the show for two years, reported a 15 per cent increase in system sales and a 25 per cent hike in underlying pre-tax profits, to £13.6 million. The company has 44 outlets in Ireland.
It said Britain’s Got Talent was its key highlight for the six-month period to June 28th, with acts such as singing sensation Susan Boyle helping the final become the most watched programme on television this year.
The hot early summer weather meant like-for-like sales growth in mature stores slowed to 7.1 per cent from 11.4 per cent a year ago, but Domino’s said sales traditionally pick up again as consumers tire of barbecue food.
The UK’s biggest pizza delivery firm said it was on track to beat full-year market expectations as it takes advantage of cheap media advertising to boost sales.
Domino’s, which has 576 franchise-run stores in the UK and Ireland, said advertising of recent short-term pizza offers had been successful, in one case driving like-for-like sales up by more than 80 per cent in one night.
The chain’s efforts to market its online delivery service helped increase e-sales further, with a 38.9 per cent rise to £35.2 million - accounting for more than 26 per cent of UK delivered sales.
Domino’s has also been adding new products to its menu, including the Piri Piri Pizza and new hot cookies.
Chris Moore, chief executive of Domino’s, said the half-year results had been achieved against a “backdrop of continued economic turbulence, the recent good weather and some very strong comparatives from last year”.
“While hot weather does have an impact on our business, sales start to come back after prolonged periods of warmer weather as the lure of the barbecue fades,” he added.
He said the group was “mindful” of tougher second half sales comparatives, but believes the robust first half and ongoing programme of store openings will help it exceed market expectations for the full year.
Domino's has been benefiting amid the recession as consumers choose to eat in rather than splash out on restaurant meals.
The group said in February that annual profits rose by 23 per cent and it has since seen ongoing growth in like-for-like sales.
Domino’s is expanding heavily to take advantage of the nation’s love of pizza and said it remained on track to smash its target for 1,000 stores by 2017.
It opened 23 new stores in the half year and also added a mobile pizza unit for outdoor events and festivals, such as the Donington Download festival, the World Superbike Championship and the Wireless festival in London’s Hyde Park.
Founded in 1960, the worldwide group is one of the best-known pizza delivery brands and has more than 8,700 stores in over 60 countries.
Its first UK store opened in 1985 and it launched in Ireland in 1991.
PA