2nd Oct 2013 07:23
LONDON (Alliance News) - Domino's Pizza Group PLC Wednesday said sales rose in the third quarter, driven partly by a surge in orders being placed online and over mobile phones, meaning it's well placed to meet analysts' expectations for its full-year results.
The pizza delivery company reported a 10.4% increase in system sales to GBP140.9 million for the 13 weeks to September 29, with like-for-like sales up 4% compared with 3.7% a year earlier, but online sales outperformed with a 19.8% increase to GBP72.3 million while mobile sales more than doubled and now account for 29% of its online business.
For the year-to-date, system sales are up 11.1% to GBP437.9 million, from GBP394.1 million a year earlier, while online sales are GBP230.7 million, up from GBP177.6 million.
The company said it opened eight new UK stores in the quarter and has opened 23 so far this year. It said a continuing battle to get planning permissions as well as a new store design had pushed back opening schedules towards the latter part of the year and it now expects to open around 50 stores in the financial year in total.
"The introduction of our excellent new store design meant a delay in first half store openings, but the programme is now well underway," Chief Executive Lance Batchelor said in a statement.
Outside the UK, the company said system sales grew 3.7% in Ireland to EUR11.5 million, while like-for-like sales were up for a ninth consecutive quarter, rising 2.4%. Year-to-date sales are up 4.5% to EUR36.1 million, with like-for-like sales up 5.2%.
Sales in Germany, where the company is moving to move to a complete franchise model, system sales were EUR2.8 million compared with EUR1 million, while like-for-liek sales were up 9.4%. For the year-to-date German sales have more than tripled to EUR7.4 million from EUR2.2 million and like-for-like sales are up 18.7%.
"We are making good progress in transferring our German corporate stores across to franchisees, which will be a significant step forward in the evolution of this new growth market," Batchelor said.
"We have a number of exciting initiatives in place across all our markets for the fourth quarter and we are confident of meeting City expectations for the full year," he concluded.
Domino's Pizza shares were up 1.6% at 598.5 pence early Wednesday, one of the biggest gains on the FTSE 250.
By Steve McGrath; [email protected]; @SteveMcGrath1
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