Domino's Pizza reports to strong start to the year

26 April 2007
Domino's Pizza reports to strong start to the year

Domino's Pizza said the year had started strongly and expects trading for 2007 to be ahead of expectations on the back of new product and marketing innovations.

The pizza delivery specialist said that sales for the 16 weeks ending 22 April from its 404 mature UK and Ireland stores were up by 14.6%. This time last year the company had 357 stores and saw sales rise by 8.8%.

System sales, which represent all sales in the UK and Ireland under the Domino's banner, were up by 24% to £86.8m.

Stephen Hemsley, chief executive at Domino's UK and Ireland, said: "This growth was driven by our successful product and marketing innovations. A key driver was also our continuing focus on improving operational standards, and in particular, improving the speed of service to our customers.

"We are very encouraged by the strong start to the year, but are mindful of the very strong comparatives last year as a result of the football World Cup and the strong product launch and marketing campaign in the last quarter of 2006. Whilst prospects for 2007 are excellent, we are unlikely to be able to maintain the like-for-like growth rate achieved in the first 16 weeks of the year."

Domino's said it has opened a total of 14 new stores and is on track to reach its target of opening 50 stores this year with a current total of 464 mature a new stores.

Hemsley said that the market offered strong growth opportunities with room for 1,000 stores in the UK and Ireland.

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