World Cup boost to Domino’s Pizza

SALES at Domino’s Pizza outlets in Ireland were down by single digit figures in the first half of the year but they saw a slight lift during the World Cup.

The company said there was a significant spike in sales on the day France played South Africa during the World Cup finals.

It also said Irish customers are ordering more pizzas online, with internet sales soaring 40% in the half. Online sales now account for 13% of all deliveries.

A spokeswoman for Domino’s said that Irish sales still remain in negative territory but added that the company is still “very much investing in Ireland”.

They expect to open up to 68 outlets in the next five years, with two planned for this year.

“We are looking at 14 locations in Ireland at the moment for future growth and we are searching for sites,” she said.

“We love our Irish stores but the impact of the recession has been felt harder there than in Britain,” she added.

Domino’s doesn’t expect any radical changes in sales figures for the remainder of the year but it said it is ready and waiting for the good times to return in Ireland.

On a group level Domino’s, Britain’s biggest pizza delivery company, said first-half profit rose 30%, helped by World Cup soccer matches and sponsorship of the Britain’s Got Talent television show. Net income increased to £12.06 million (€14.4m) in the six months ended June 27.

Domino’s was helped as customers watched World Cup matches at home on television, plus a two for tuesday advertising campaign that started last August.

Second-quarter gains in sales at outlets open at least a year of 17% were spectacular, said Paul Hickman, a KBC Peel Hunt analyst.

“Three factors contributed to this over performance”, wrote Mr Hickman, who has a “buy” recommendation on the shares.

“The continued success of the ‘two for tuesday’ promotion, the third year of sponsorship of Britain’s Got Talent, and the World Cup.”

Domino’s boosted its outlet-opening plans in Britain to 55 a year from 50 earlier this year, as it seeks to have 1,200 outlets by 2021.

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