Domino’s grabs a greater slice of the action as it loads up with sales in Q3

● Chief executive says firm expects to add a record 90 stores in UK this year

Pizza delivery heavyweight Domino’s has battled strong competition and consumer belt-tightening to serve up a surge in UK sales.

The group, which encompasses franchises in the UK and several overseas markets for the US pizza giant, hailed improved trading in the UK after reporting an 8.1 per cent jump in like-for-like sales in its third quarter to 24 September.

The solid performance came despite the company confirming that Britons remain “uncertain” amid Brexit concerns and as the weak pound has taken its toll on household finances.

It highlighted a boost in online orders thanks to a concerted advertising drive, with internet orders rising 17.4 per cent and now accounting for three quarters of all sales.

Domino’s, which ranks as the UK’S biggest pizza delivery chain, said its new ad campaign, The Official Food Of Everything, had driven 200,000 online orders on the last Saturday of September alone – the equivalent of 140 orders a minute.

Chief executive David Wild said: “We are pleased with our performance in Q3, especially the improved trend in our core market of the UK. Additionally we are making progress in all our overseas operations.

“In the UK, consumers are uncertain and they continue to focus on value. Our commitment to growth remains undiminished, as does that of our franchisee partners. We expect to launch a record 90 stores in the UK this year, with an encouraging pipeline already in place for openings in early 2018.”

The group added that it expects annual profits to remain “at least” in line with City forecasts. Overall thirdquarter group system sales lifted 20.8 per cent – or 11.9 per cent with the boost from the weak pound stripped out – to £286.4 million, with international turnover up 25.1 per cent.

Steve Clayton, fund manager of the HL Select Growth and Income Shares funds at Hargreaves Lansdown, said customers had “responded strongly” as Domino’s “turned up the marketing heat” in the face of increased competition from the likes of Just Eat, Deliveroo and Uber Eats.

He said: “Domino’s is a cash generative business model and has significant potential to add new stores in the UK and overseas. Domino’s is winning market share, not least due to the strength of their online ordering platform.

“In Q3, Domino’s turned up the marketing heat, with a ‘Dine for £9.99’ offer and customers responded strongly, despite increasing competition.”