Domino’s has the X Factor as pizza chain upgrades profit forecast
The X Factor final on December 2 acted as the “catalyst” for its biggest day of sales for the year.
Domino’s Pizza expects to serve up higher than expected profits after the X Factor helped it post a strong end to the fourth quarter.
The food chain reported an 18.2% rise in sales across the group to £321.8 million in the 13 weeks to December 24, while in the UK revenue increased 10.1% to £294.7 million.
UK like-for-like sales were up 6.1% in the period, with Domino’s adding that the start of the X Factor final on December 2 acted as the “catalyst” for its biggest day of sales for the year.
A record 95 new store openings in the UK in 2017 also drove sales, Domino’s said, while also signalling that full year revenues will grow 8.7% in the UK.
Boss David Wild said that as a result, full year underlying pre-tax profit is expected to be “slightly above” the current range of market expectations.
“We are pleased to report a good performance in quarter four, completing another year of significant progress and growth for Domino’s.
“With a record year for new store openings and continued like-for-like sales increases, the UK business has demonstrated its resilience in a challenging economic and competitive environment,” he said.
The results come following a difficult period for Domino’s, which saw sales cool last year amid Brexit fears and as the weak pound squeezes household finances.