Domino's slice of the action climbs 8.4%

Pizza delivery chain Domino’s today served up record interim results – but warned that its sales were unlikely to grow as quickly over the rest of 2005.

Domino’s credited a surge in online orders and the launch of a new cheese steak melt pizza for an 8.4% increase in like-for-like sales during the 26 weeks to July 3.

Chief executive Stephen Hemsley said the outlook was positive, but the “unprecedented success” of its Double Decadence pizza at the end of last year meant the next few months would be more challenging when comparing sales figures.

This did not deter investors from grabbing a bigger stake in the company as Domino’s shares rose 1% today. Analysts said same-store sales growth of 6% should be achievable.

A record number of branches were opened during the six months as pre-tax profits rose 22.6% to £5m (€7.2m) before accounting for a one-off gain on sales of corporate stores.

Domino’s created around 575 new jobs as its portfolio of stores in the UK and Ireland grew to 380 sites at the end of June, up from 337 at the same stage of last year.

Mr Hemsley said the company continued to target between 800 and 1,000 stores in Britain and Ireland.

Online orders were taking a greater slice of its business with sales over the internet rising 64%.

The group – founded in the United States in 1960 – claims to be the world leader in pizza delivery, with more than 7,500 stores in more than 50 countries and around 145,000 staff.

Its first Irish outlet opened in 1991.