Domino's overcomes rising cheese costs

Strong sales of new pizzas such as the ’meateor’ and rugby-themed ’scrummy’ helped Domino’s Pizza post a 33% hike in 2007 profits today.

The delivery firm said innovative menu additions and an advertising push offset “unprecedented” increases in cheese and wheat costs to see Domino’s deliver a slightly better-than-expected £18.7m (€24.7m) in pre-tax profits.

Domino’s added that 2008 trading had got off to a good start, with like-for-like sales up 11% in the first six weeks of the year.

Sales throughout last year rose 14.7%, stripping out the new store sales.

Customers are increasingly turning to the internet and text messaging to order their pizzas, according to the UK and Ireland-based group.

E-commerce sales surged by 61% to £32.2m (€43m) in 2007 and up 91% in the first six weeks of 2008.