1409 Tuesday 29 January 2019
Domino’s have had a strong end of 2018; they had record breaking results the Friday before Christmas as they sold more than 535,000 pizzas which is equivalent to 12 pizzas a second and a strong digital performance of online sales growth up 10.8%. UK sales were up 6.0% and the like for like sales were up 4.5%. With the 13 weeks to 30th December 2018 UK and Ireland sales in the 4th Quarter were £312 million. With group sales rising 5.5% to £321.8 million. Domino’s currently operate 1,261 store group-wide with 25 new stores which opened in Q4. During 2018 in the UK and Ireland, Domino’s opened 59 stores creating more than 2,000 jobs.
What’s next for Domino’s for 2019? With the UK delivered food market expected to be worth £9.3bn by 2022, Domino’s aims to maintain the market share over this period. There is potential for 1,600 stores in the UK, providing attractive returns for Domino’s shareholders and franchisees.They see continued growth in the UK and Ireland and an increased investment into other territories such as Norway, as like for like sales performance was 6.4% which was blamed on the unseasonably warm and dry weather.Domino’s have had problems with integrating the two Norwegian operations which was acquired in the first half of 2017 which they said was “more complex and challenging than expected”.
Over the past year Domino’s have had a downward trend in share price; it’s currently sat at 251.90 which is down nearly 30% within a one year range. Even with the falling share price David Wild; Chief Executive Officer added “The UK delivered food market is vibrant and we estimate that it will grow at a compound rate of 8% a year to 2022”.
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