Domino’s Pizza shares soar on online sales boost

The UK’s biggest pizza delivery firm Domino’s Pizza Group said it expected full-year results to be ahead of its expectations after a surge in online sales boosted its third quarter.
Domino’s Pizza shares soar on online sales boost

Shares in the company jumped more than 14% to a record high in London at one stage on Wednesday, and was the top gainer on the FTSE-250 Midcap Index in early trading.

The group, which has over 800 stores in Britain but also operates in Ireland, said UK like-for-like sales rose 14.9% for the 13 weeks to September 27.

The company said it was on track to open at least 50 stores in the UK during 2015.

Domino’s said there was huge demand for its mobile app and revamped website, which customers were increasingly using to order their pizza, sides and drink bundles.

Almost 75% of delivered sales were placed online in its third quarter, with more than half of these placed through the app on android or IOS devices.

Analysts at Numis Securities forecast pre-tax profit rising 24% over the full year, with UK like-for-like sales gaining 10.5%.

The brokerage has a “buy” rating on the stock with a target price of 1100 pence.The company maintained its interim dividend at 5.67 pence per share.

The stock had risen about 26% this year up to Tuesday’s close, valuing the business at £1.5bn (€2bn).

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