Domino’s shares up 3% on growth

Pizza delivery firm Domino’s Pizza plans to increase its presence across the UK to 1,600 stores after seeing a strong performance from new outlets and a positive market outlook, it has said.

Outside the UK, Domino’s has also identified opportunities for 400 stores, excluding its German joint venture, up from around 100 at the end of 2016. The firm, which expects to have 950 UK stores operating by the end of 2016, had previously been targeting 1,200.

“Our continued strong ecommerce performance and our collaboration with our dedicated franchisees, enable us to increase our UK presence significantly,” said chief executive David Wild.

“Internationally, our progress in Switzerland and new collaborations in the Nordic region are exciting opportunities for the business,” Mr Wild said.

Shares in the firm, down almost 3% so far this year, were up 3% at one stage yesterday. Domino’s, which hosted an event for financial analysts yesterday, said it was continuing to trade well and profit guidance for 2016 was unchanged.

Analysts are on average forecasting a pre-tax profit of £84.3m (€98.7m), up from £73.2m made in 2015.

The firm said re-phasing of supply-chain projects mean that full-year capital expenditure will be around £20m, less than the £33m indicated at the half year.

Domino’s said it remains committed to the return of surplus cash to shareholders through buybacks, but had paused the process in recent weeks because of a technical issue it is resolving.