Shares at Domino’s climbed to a record high, as Britain’s biggest pizza retailer enjoyed one of its best quarterly updates for some time.
Trading in Domino’s UK business was particularly robust, driven by continued investment in digital, now focussed on mobile. Revenue through digital channels was 35% ahead of Q3 last year and more than 75% of delivered sales in the year to date have been online, with more than half of these placed through the app. During the third quarter where offline media spend has traditionally been low, the chain also benefitted from its ongoing sponsorship of Channel 4 soap Hollyoaks, which enhanced brand saliency and ramped up sales. Poor weather during the summer months was also a contributing factor.
During the period 12 new stores were opened in the UK, bringing the total year to date to 33, and the group is on track to opening a minimum of 50 in the UK before the end of 2015.
“We are delighted by this performance as our UK business goes from strength to strength, reflecting the success of our strategic and marketing initiatives,” said CEO David Wild. “It represents the eighth consecutive quarter of double digit like for like sales growth as we continue to focus on delivering great food with great service, using our best in class digital platforms.
Our international businesses also continue to show encouraging signs of improvement.
We enter the final quarter of the year with good momentum, are confident of beating our previous expectations for the full year and remain excited about our longer term growth prospects.”