Friday 24 November 2017

Domino's gets €12m slice of action

Donal O'Donovan

Donal O'Donovan

Domino's Pizza is heading into "clearer waters" in Ireland as its system sales here rose 5.1pc to €12.1m in the 13 weeks to June 30.

The group said it has experienced its sixth consecutive month of like-for-like sales growth in Ireland during the period and the run rate for the first half is now at 6.5pc.

The business here was pummelled as the downturn took hold, with Domino's having to provide financial assistance to some franchisees.

In the UK, system sales rose 11.7pc to £147.6m (€173.7m), while like-for-like sales were 6.1pc higher.

Domino's said the results were "particularly pleasing" as they came on top of strong comparative figures for the corresponding period last year.

Despite the positive spin, shares in Domino's plunged nearly 8pc at one stage as investors ditched the stock on the back of losses in Germany.

The company said that underperformance by stores it directly operates in Germany, coupled with higher training costs, meant that its annual losses there would be between £2m and £3m higher than it previously anticipated.

Domino's plans to open 12 more outlets in Germany bringing its total there to 19.

Domino's has 48 outlets here and nearly 740 in the UK.

Irish Independent

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