Record new UK site openings boosts Dominos Q4 results

Domino's Pizza Group has released its Q4 trading statement for the 13 weeks to 24 December 2017, showing a good performance, boosted by record new store openings.

Group system sales were up 18.2%, with strong growth achieved in both established and newer markets.

UK & ROI system sales were up 10.1% in the quarter, or 9.9% excluding currency effects. In the UK, system sales rose 9.8%, with new store openings and like-for-like performance both contributing strongly.

Like-for-like sales growth, excluding stores in split territories, was 6.1%, driven by strong order growth. The like-for-like performance benefited from an additional trading day with the exclusion of Christmas Day, a non-trading day, from the 13 week period in 2017.

The start of the X Factor Final on 2 December 2017 was the catalyst for our biggest day of sales for the year, demonstrating the growing trend for combining ordering in with family entertainment. Sales were up 25% over the average Saturday across the year.

UK online sales were up 14.5% year-on-year, representing 77% of system sales in Q4 as our investment in digital capability continues to deliver benefits for customers. We had deployed GPS to 244 stores by the year end.

The firm opened 37 stores in the UK during Q4, taking the total for 2017 to a record 95 - comfortably surpassing the previous record set in 2016 and creating more than 3,300 jobs. By the period end, the group was trading from 1,045 outlets.

ROI system sales were up 12.0% on a constant currency basis. Like-for-like sales grew 10.4%, and we opened a further new store in Q4 taking the total to 49.

CEO David Wild (pictured) said, 'We are pleased to report a good performance in Q4, 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.

'Our international operations are growing in scale and benefiting from our expertise in supply chain and digital. We expect full year underlying profit before tax to be slightly above the current range of market expectations.'