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Domino's shares fall despite sales jump

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Chief Executive Lance Batchelor has decided to quit the firm

Chief Executive Lance Batchelor has decided to quit the firm

Chief Executive Lance Batchelor has decided to quit the firm

Shares in UK-listed Domino's Pizza have crashed as much as 6pc even after the chain said like-for-like sales in its core British market rose 3.7pc in the 13 weeks to September 23.

The growth for the period was lower than the 4.1pc rate it clocked up in the corresponding period last year, prompting the share sell-off yesterday.

But the chain was helped by consumers who stayed at home during miserable summer weather and dined in as they watched the Olympics.

Total sales for the period climbed 7.9pc to £136.4m (€171.7m), while in the year to date, like-for-like sales at its UK stores rose 5.1pc. That compared to a 3.6pc rate in the corresponding period last year.

In Ireland, Domino's slipped into reverse again on a quarter-on-quarter basis. Its like-for-like sales in the three months to September 23 declined 2.1pc. But that was narrower than the 4.1pc decline the chain reported here in Q3 of its last financial year. In the year to date, on a like-for-like basis, sales here were up 1.2pc in euro terms.

"We approach the fourth quarter, traditionally our strongest trading period, with continued optimism," said chief executive Lance Batchelor.

Domino's has previously had to provide financial assistance to some struggling franchises in Ireland as the recession weighed on the businesses.

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