Sunday 22 April 2018

Domino's Pizza shares hit record high as digital orders surge

Inside a Domino's Pizza store. Photographer: Luke Sharrett/Bloomberg
Inside a Domino's Pizza store. Photographer: Luke Sharrett/Bloomberg

Lauren Davidson

Shares in Domino's jumped 17pc to an all-time high after the pizza company reported a 19pc rise in revenues for the third quarter as hungry consumers ordered meals via its app.

Group-wide sales increased to £214.5m for the three months to September 27, led by a strong performance in the UK, where revenues grew by 21pc to £200m.

Domino's said digital revenues were more than a third higher than the same period last year, with 75pc of deliveries now being ordered online.

More than half of these digital orders are placed via the Domino's app, which the company said in July had been downloaded more than 10m times.

The Michigan-based food chain has also made the most of its digital popularity by allowing users in the US to order a pie by tweeting the pizza emoji and by launching a novelty "Tummy Translator" app that translates stomach grumbles into a pizza order.

The New York-listed pizza provider said its sponsorship of the television show Hollyoaks and poor weather during the summer helped boost sales in the July to September period.

Like-for-like sales in the UK grew 15pc, while the chain opened 12 stores in the third quarter.

The pizza provider, which recently expanded to Italy, has opened 33 UK stores in the year to date and is on track to open at least 50 in 2015.

"We are delighted by this performance as our UK business goes from strength to strength, reflecting the success of our strategic and marketing initiatives," said David Wild, chief executive.

"It represents the eighth consecutive quarter of double-digit like-for-like sales growth as we continue to focus on delivering great food with great service, using our best-in-class digital platforms."

Mr Wild added that the group was confident of beating its previous expectations for full-year results.

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