14th Oct 2015 07:41
LONDON (Alliance News) - Domino's Pizza Group PLC Wednesday reported a rise in sales in the third quarter of 2015 and said it now expects its full-year results to be ahead of expectations following a solid start to the fourth quarter.
Shares in Domino's shot up 14% at 1,017.00 pence following the announcement, the best performer in the FTSE 250 Wednesday morning.
The takeaway pizza company said group system sales grew 19% in the 13 weeks to September 27 to GBP214.5 million from GBP179.6 million in the same period the year before. In the nine months to the same date, group system sales were up 16% to GBP641.2 million from GBP554.6 million.
Domino's said it achieved like-for-like sales growth in each of its operating regions comprising the UK, Republic of Ireland, Switzerland and Germany.
In the UK, third-quarter like-for-likes increased 21% to GBP200 million from GBP165.7 million, which it said was driven by continued investment in digital including a focus on mobile. It said it also benefited from its ongoing sponsorship of TV soap Hollyoaks, as well as relatively poor weather during the summer months.
The Republic of Ireland saw like-for-like sales growth of 14% to EUR13.8 million from EUR12.2 million where Domino's said it is also seeing an increasing trend towards digital ordering and the benefits of an economic recovery.
Meanwhile in Switzerland and Germany, Domino's said it is focusing its efforts on improving service to enhance store level performance, although it acknowledged that there "still remains a lot to do". Like-for-likes in Switzerland rose 19% to CHF4.1 million from CHF3.4 million, while Germany achieved like-for-like growth of 11% to EUR2.8 million from EUR2.5 million.
"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," Chief Executive David Wild said in a statement.
"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.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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