'Blockbuster' pizza boosts Domino's

Pizza delivery chain Domino’s today said the popularity of a new double-layer pizza helped it serve up strong Christmas sales.

The group, which operates 357 stores in the UK and Ireland on a franchise basis, said Double Decadence contributed to a 13.2% hike in like-for-like sales in the six weeks to January 2.

The successful launch of the product, promoted in a campaign starring Naked Gun actor Leslie Nielsen, helped average weekly sales hit a new record.

Chief executive Stephen Hemsley said: “In view of this performance, I am confident we can deliver full-year results in line with market expectations.”

He said Double Decadence was a “pretty big factor” in the sales hike, adding: “It’s a pizza we knew had gone down well around the world. We knew it was a bit of a blockbuster product.”

After its UK launch in October the pizza made up 20% of all sales, and it now counts for around 10%.

Mr Hemsley said the most popular pizza was Pepperoni Passion. Domino’s sold around 18 million pizzas in the past year.

Domino’s, which will post annual results next month, said same-store sales increased by 8.2% in its second half, up from a 4.9% rise in the first half. This left annual like-for-like sales 6.6% higher.

The group – founded in the United States in 1960 – claims to be the world leader in pizza delivery, with more than 7,000 stores in more than 50 countries and more than 250,000 staff.

Its first UK franchise store opened in 1985 and the first Irish outlet opened in 1991.

The company opened 40 new stores in the past year, compared with 30 the previous year. The majority of its shops are in the south and south Midlands, although the fastest growing area is the north.

Shares rose 2.5p to 227.5p today.