New locations and chocolate offering drives sales for Domino’s

SAN FRANCISCO, CA - MAY 01:  A sign is posted outside of a Domino's Pizza restaurant on May 1, 2014 in San Francisco, California.  Domino's Pizza Inc. reported an 18 percent surge in first quarter income with earnings of $40.5 million, or 71 cents per share, compared to $34.4 million, or 59 cents per share, one year ago. (Photo by Justin Sullivan/Getty Images)

American pizza chain Domino’s has reported an increase in sales for the first half of the year while pace of like-for-like growth dropped.  

The group has recorded an 11% increase in group system sales for the 26 weeks to 25th June, although the rate of like-for-like UK growth has tumbled from 13% to 2% excluding splits.

Once accounting for store splits the group opened 40 new units in the UK, and looks to open another 50 before the end of the year, with most new openings now set to split existing territories.

The chain will shortly open its 1,000th store and aims to eventually own and operate 1,600 sites.

Chief Executive Officer David Wild, said: “The first half of 2017 has been another period of good progress for Domino’s Pizza Group, despite a more uncertain UK economic environment. The core business delivered strong year-on-year system sales, continuing to take pizza market share, with good like-for-like performance.

“DPG continues to lead the pizza market, with innovations such as the popular Lotta-Chocca pizza and our launch today of Amazon Echo voice ordering. Following a successful trial, we’ll be rolling out GPS, which will enable customers to track their delivery and help franchisees with labour management.

This autumn, the company will invest around £4m to improve customer value, supported by a bold new advertising campaign.

Anticipated net cost of £3m in financial year 2018 will ramp up split between operating expense and depreciation.

“Whilst we acknowledge that our UK consumers are currently more cautious about the economic outlook, we’re focussing on growth investment with our franchisees; boosting marketing; improving customer engagement and enhancing our leading position in food delivery. Pizza remains the world’s most popular delivered food, and Domino’s is the top choice for consumers.”

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