Strong trading around the New Year and Easter boost Domino’s Q1 sales

BRITAIN’S BIGGEST pizza delivery firm Domino’s Pizza Group said first-quarter sales rose 18.3 per cent as strong trading around the New Year and Easter, and online orders helped offset the impact of unusually colder weather.

Sales at UK stores open over a year rose seven per cent in the quarter, picking up pace from 4.8 per cent growth seen in 2017.

UK online sales rose 16.2 per cent year-on-year to contribute nearly 80 per cent of system sales in the quarter, Domino’s said.

Domino’s, which has 1,054 stores in the UK but also operates in Ireland, Switzerland and Germany, said group system sales in the 13 weeks to April 1 rose to £311.1m.

The London listed company, a master franchisee of US group Domino’s Pizza Inc, said it opened nine UK stores in the period and remained on track to open 65-75 new stores in 2018.

Dominos said 541 out of its 1,054 stores in the UK had GPS tracker functionality, allowing customers to track their deliveries.

Much like its parent company, Domino’s Group is also focusing on sales through online channels to fend off competition from the likes of Just Eat, an online food delivery company, which has sprung to the blue chip index in less than four year since listing.

It is also fending off the downturn in the casual dining sector as budget-conscious consumers tighten their belts.

Profits in the restaurant sector have fallen 64 per cent in the past 12 months, according to UHY Hacker Young.