Domino's Pizza reports profits increase

Domino's Pizza today said half-year profits and sales rose strongly as consumers opted to dine at home during the current economic turmoil.

The delivery firm, which operates a network of franchised stores including 49 in Ireland, told the City it was well placed to exceed market expectations for the year.

The prediction came after pre-tax profits increased by 32.7% to £10.9m (€13.7m), while like-for-like sales were ahead 11.4% in the 26 weeks to June 29.

Domino's said fixed contracts and higher retail prices had shielded it from food and energy price inflation, although it warned further "modest" price increases were likely early next year.

Chairman Stephen Hemsley said the results were achieved in a "significantly tougher trading environment".

He added: "The trend that we are witnessing so far is that many consumers are "trading down", which in our industry means that they are eating out less often and staying at home.

"Once these consumers have decided to stay at home, Domino's has the opportunity to serve them and with the combination of a great product, excellent service and effective marketing, we have achieved record levels of system sales in the first half of the year."

Total sales, which rose 19.5% to £170.2m (€213.6m), were given a lift by the boost to brand awareness offered by sponsorship of 'Britain's Got Talent' on ITV.

Online orders represented 21.8% of all delivered pizza sales, generating revenues of £25.3m (€31.7m) - an increase of 85.1% on a year earlier.

The company holds the master franchise to own, operate and franchise Domino's Pizza stores in the UK and Ireland. Its first Irish store opened in 1991. The majority of its outlets are owned by franchisees.