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Domino's Pizza expects bumper year after third-quarter sales surge

01 October 2009 by
Domino's Pizza expects bumper year after third-quarter sales surge

Domino's Pizza expects to exceed expectations for the full financial year after boosting sales by more than 10% in the third quarter.

The pizza takeaway chain saw like-for-like sales rise by 10.8% in the 13 weeks to September 27 as marketing campaigns, including its sponsorship of ITV show Britain's Got Talent, helped to boost trading.

The company, which has 583 stores in the UK and Ireland, opened seven new sites during the quarter, part of a plan to achieve 1,000 outlets by 2017.

Domino's chief executive Chris Moore said the company was now bullish about prospects for the year as a whole.

"We still have to face some tough comparatives before the year end, but by focusing on the quality of our product and the excellence of our customer service, we are ready for the challenge," he said.

"As a result of strong trading in the third quarter, the board believes it is on track to exceed market expectations for the full year."

In an analyst note, broker Charles Stanley said: "Domino's Pizza has once more outperformed market expectations.

"Despite considerable uncertainty amongst restaurants, Domino's management continues to exude confidence over the group's future prospects. Franchises appear well aligned with group aspirations, demonstrating that genuine partnership relationships can be goal congruent."

Rival pizza chain, Papa John's, also unveiled positive results for it UK operation, revealing that it achieved growth of 8.9% in the third quarter, with a total sales increase of 30.9%.

The privately-owned US operator, which does not reveal actual sales figures, said it had enjoyed record internet sales on Friday and Saturday nights during September as people opted for a night in front of the TV.

Dublin man voted Domino's best store manager worldwide >>

Domino's on target to exceed 1,000 stores >>

Domino's Pizza boosts interim profits by one-quarter >>
Papa John's looks to grow as consumers opt for recession-friendly pizza >>

By Daniel Thomas

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