Domino’s sales increased due to new store openings
- Group sales increased by 19.6 percent in the six months to June 25
- Sales of like-for-like systems increased by 9.7 percent in the first half of the year
The Domino’s Pizza UK franchise delivered strong sales in the first half of 2023 driven by new store openings, deal demand and improved delivery times.
The Domino group’s sales rose 19.6 per cent in the six months to 25 June, from £278.3m to £332.9m, thanks to the launch of 29 new stores.
Sales of comparable systems rose 9.7 per cent from £710.5 million to £766.4 million over the same period, with an 8.2 per cent increase in the final quarter.
As a result, Domino’s expects to post core underlying profit for the year of between £132m and £138m, up from previous guidance of £127.6m.
Domino’s said it benefited from store openings, demand for deals from customers and improved delivery times
Total orders for the London-listed company stood at 35.4 million over the six months and Domino’s said trading momentum was “encouraging” in the first three weeks of the current half-year, with a like-for-like increase of 7.9 per cent.
The group also unveiled a new £70m buyback plan that will kick off after the current £20m buyback the pizza company announced in May.
£13.9 million was bought back on 28 July.
Domino’s Stocks rose 12.8 percent in afternoon trading on Tuesday to 392 pence.
Elias Diaz Sese, interim chief executive officer of Domino’s said: “We delivered a strong first half of 2023 with continued growth in orders and sales.
“Our alignment with our brilliant franchise partners has allowed us to accelerate our progress on the strategic initiatives outlined at the beginning of the year, with significant acceleration in store openings, greater app penetration and material improvements in delivery times.
“Today’s results are testament to the hard work of our colleagues and franchise partners who have worked relentlessly to ensure that no one performs like Domino’s.”
Andrew Rennie will take over as CEO of the company starting next week.
In March, Domino’s received a record 18.5 million orders during the last three months of last year as the FIFA World Cup sent a wave of takeaways.
In the fourth quarter of 2022, a total of 18.5 million transactions were made on the group’s platform, an increase of 4.1 percent on the previous year, with a decrease in the number of deliveries offset by an increase of 27 .9 percent of the number of collection orders.
This followed a drop in demand over the past six months amid pressure on consumers’ cost of living and the absence of Covid-19 restrictions encouraging people to eat in pubs and restaurants again.