Dominos kicks of year with encouraging results

Domino's Pizza has posted Q1 trading figures showing system sales up by 18.3%, and UK system sales up by 10.6%, a UK LFL rise of 7%.

The company stated its has 1,203 stores group-wide; 11 new stores opened in Q1, including nine in the UK.

CEO David Wild (pictured) said, 'The year has started well, with continued good growth in all of our markets. In the UK, customers are responding very positively to our clearer value proposition, with strong scores for value for money and overall satisfaction. We have also made excellent operational progress, with the rapid roll-out of GPS continuing. I am encouraged by our international operations, which are gaining scale as more customers grow to love our great tasting pizzas.'

'Organic growth represents year-on-year performance on a constant currency basis and excluding the impact of acquisitions or disposals.

'UK and ROI system sales were up 10.4% in the quarter. In the UK, system sales rose 10.6%, with new store openings and like-for-like performance both contributing strongly. Like-for-like sales growth, excluding stores in split territories, was 7.0%, driven by strong like-for-like order growth of 6.7%. The negative impact of the severe weather experienced in March was offset by a strong New Year performance and the timing of Easter.

'UK online sales were up 16.2% year-on-year, representing 78.9% of system sales in Q1 as customers increasingly choose to engage with us over our range of digital platforms. Our GPS tool is now live in 541 stores, generating valuable labour efficiencies for franchisees and an improved customer experience. We have also completed our new supply chain centre in Warrington.

'We opened nine stores in the UK during Q1, reflecting the significant number of new openings in Q4 of 2017 which pulled forward the Q1 pipeline. By the period end we were trading from 1,054 outlets. We continue to expect to open 65-75 UK stores during 2018.

'ROI system sales were up 5.2% on a constant currency basis. Like-for-like sales, excluding stores in split territories, grew 3.5%. The slower growth in part reflected the impact of the severe weather seen in March.'