Saturday 14 December 2019

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 has upgraded profit forecasts (PA)
Domino's has upgraded profit forecasts (PA)

By Ravender Sembhy, Press Association City Editor

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.

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