Domino's shrugs off 'World Cup' effect to boost half-year sales
Tuesday 26 July 2011
The UK's demand for pizza remains undimmed this year as Domino's revealed profits were up 15 per cent and management shrugged off fears that its popularity was on the wane.
The fast-food group forecast a strong second half and added that its plan to go digital was continuing to gain ground.
Domino's reported yesterday that pre-tax profits were up to £20.1 million in the 26 weeks to 26 June, up from £17.5m a year earlier. This came despite revenue growth slowing to 2.4 per cent.
Its outgoing chief executive Chris Moore hailed the performance of Britain's biggest pizza delivery company against "one of the toughest starts to the year" for some time. He pointed to an especially tough comparison with a year earlier when the football World Cup had boosted sales. Other issues included the tough economic climate as "people realised they have less money in their pay packet" as well as the warm weather which sends potential customers out of the house.
Geetanjali Sharma, an analyst at Execution Noble, said: "There have been concerns around the like-for-like slowdown and maturity in the business model. However, today's results should go some way in alleviating these concerns."
Mr Moore said that without the World Cup effect in the second half, revenue growth should improve. The company will also triple its marketing budget over a year earlier, which includes the sponsorship of Britain's Got Talent, and launch new types of pizza.
He pointed out the group was "close to the tipping point" as it grew its online business to 48.5 per cent of sales. It is working towards two-thirds of sales being generated online by 2015.
Mr Moore is set to quit the group some time next year, to be replaced by Lance Batchelor, a non-executive at the group and former head of Tesco Mobile. The company would not give an exact departure date yesterday.
The company has a total of 688 stores across the UK and has pledged to continue expanding, and will hit its target of 60 new stores in 2011.
- 1 Venezuela Expo Tattoo 2015: Extreme body art from 'Vampire Woman' to 109mm earlobes
- 2 Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
- 3 Ball pool for adults opens in London
- 4 Amal Clooney gives excellent response to fashion question at European Court of Human Rights
- 5 Rashida Jones speaks out against male-centric porn saying 'women should have sex and feel good about it'
Boris Johnson claims porn-obsessed Islamic jihadists are 'literally w*****s'
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Putin opponent reveals Russian President's daughter's secret identity
Ball pool for adults opens in London
Gay couple buy JebBushForPresident.com web domain, and refuse to sell
9 reasons Greece's experiment with the radical left is doomed to failure
Have we reached 'peak food'? Shortages loom as global production rates slow
Greece elections: Syriza and EU on collision course after election win for left-wing party
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Liberal Democrat minister defends comments suggesting immigration causes pub closures
King Abdullah dead: We can't afford not to hold Saudi Arabia's royals to account
iJobs Money & Business
£40000 - £50000 per annum: Recruitment Genius: This is an exciting opportunity...
£30000 - £35000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...
£13000 per annum: Recruitment Genius: This Pension Specialist was established ...
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...