Pizza firm turns corner as sales rise by 6.5%

Domino’s Pizza has expressed confidence that its Irish operations are entering sustainable recovery mode, after seeing a 6.5% annualised sales increase here in the first half of the year.

Chief executive Lance Batchelor said that Domino’s has just seen its sixth consecutive month of positive like-for-like sales growth, in Ireland, leading to growing confidence that its operations here are now “heading into clearer waters”.

“I am particularly pleased to see that the turnaround is being seen across all parts of the country, and not just in Dublin, with sales in smaller towns also positive.

“This turnaround is testament to the franchisees’ commitment to protecting product quality and service, their drive to grow sales with increased local store marketing activity, their commitment to extend their opening hours and their continued support of national meal deals,” he added.

Second quarter sales — at Domino’s Ireland, where there are 48 outlets — grew by 6.1%, on a like-for-like basis.

Indeed, like-for-like sales were up across the group’s European business but group pre-tax profits were down by 46%, year-on-year, to £11.6m (€13.3m). But, there was an £11.1m impairment charge relating to the German business. Additional one-off costs of £5m-£7m are likely this year and Domino’s German expansion will take longer due to more necessary investment until a new minimum wage scheme is rolled-out in certain parts of the country.

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