Online sales fuel growth for Domino’s Irish arm

Sales in Domino’s Pizza in Ireland were up more than 13% in the third quarter, with strong growth in its online business, the firm said.

Shares in Domino’s, which is Britain’s biggest pizza delivery firm, soared as much as 9% in London as it also reported improved trading in the third quarter in the UK, adding it expects full-year underlying profit before tax to meet market forecasts.

Domino’s said its Irish performance has been driven by very strong growth online, with sales up 31% and now representing 58% of total sales. It added that it opened its first new store in the Republic for six years in the third quarter, taking the total number to 48.

Chief executive David Wild said Irish growth online was complemented by similar growth in Switzerland. He said a new ad campaign led to the firm’s record sales in one day on the last Saturday in September, with 200,000 online orders.

Domino’s Pizza — a master franchisee of US group Domino’s Pizza Inc —said group system sales in the 13 weeks to September 24 rose almost 21% to £286m (€320m), with sales at UK stores open for more than a year rising 8%. UK sales were boosted by a 17% surge in online orders. In July, Domino’s reported much lower like-for-like sales growth in the first half of the year, sending its shares tumbling.

The company said it would open 90 stores in UK this year, citing strong demand for delivered food in the UK. It said: “Despite the continued uncertainty affecting the UK, we are investing in growth and the customer proposition for the long term.” The firm said it anticipated full year underlying profit before tax to at least be in line with current market expectations.

Additional reporting: Reuters

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