Trading Update

RNS Number : 0754F

Domino's Pizza UK & IRL PLC

06 January 2010

 



6 January 2010

DOMINO'S PIZZA UK & IRL plc

Quarter Four Trading Update

13 weeks to 27 December 2009

Domino's Pizza UK & IRL plc ("Domino's" or "the Company"), the leading pizza delivery company in the UK and the Republic of Ireland, today announces its trading update for the 13 week period to 27 December 2009 ("the period"). 

Domino's is delighted to announce system sales for the period increased by 15.6% to £112.4m (2008: £97.25m). System sales for the 52 weeks ended 27 December 2009 increased by 16.0% to £407.0m (2008: £350.8m). Like-for-like sales in 501 mature stores grew by 8.6% for the period (2008: 8.6% in 451 mature stores), bringing like-for-like sales growth for the year to 8.4% (2008: 10.0%). 

The Company opened a record 55 new stores during the year (2008: 52), including its landmark 600th store on London's High Holborn in early December. No stores were closed during the year, bringing the total number of stores in the system at the year end to 608 (2008: 553). These new stores created around 1,500 new jobs taking the total number of people who work in Domino's Pizza stores in the UK and the Republic of Ireland to nearly 20,000.

During the week of 26 October 2009, Domino's celebrated 10 years of e-commerce with a record e-commerce week. Over a third of all orders for this week were taken online and e-commerce sales in the UK and Republic of Ireland increased by 39.9% (2008: 56.2%) for the period. For the year, e-commerce sales rose by 40.4% (2008: 73.7%) to £78.5m (2008: £55.9m) and now account for 27.8% of UK delivered sales (2008: 23.2%).

The company continues its policy of returning cash, which is not required in the business, to shareholders in the form of share buybacks and dividends. During the year, a total of £18.0m was returned with the buyback of 2.6m shares for £7.6m and dividends of £10.4m.

Chris Moore, Chief Executive, commented: "As the year comes to a close, we are delighted to be in such a strong position and have much to look forward to in 2010, including the completion of our new commissary in West Ashlands, Milton Keynes. We will continue our focus on great service, a high quality product and innovative marketing to build sales through new and repeat custom.

"We have been up against some very tough comparatives during the year, which makes these figures even more pleasing. The success of Britain's Got Talent, the use of short-term tactical promotions and our continued focus on building our online sales have been major drivers during the year. 

"In 2009, and in particular due to an exceptionally strong final quarter, we have outperformed our predicted like-for-like sales, improved our margins and opened more stores than anticipated. With this in mind, I am delighted to announce that the Company will deliver full year 2009 profits comfortably ahead of current City expectations. We will update the market further on 16 February 2010 with the publication of the Company's preliminary results."

-Ends-

For more information, please contact:

Domino's Pizza:

Chris Moore - Chief Executive Officer                                                                                                                   01908 580604

Lee Ginsberg - Chief Financial Officer                                                                                                                   01908 580611

Georgina Wald - Corporate Communications Manager                                                                                  01908 580660

Hogarth Partnership Limited:

Tim McCall, Anthony Arthur, Simon Hockridge                                                                                                 020 7357 9477

Numis Securities Limited

David Poutney, James Serjeant                                                                                                                               020 7260 1000

Altium

Ben Thorne, Tim Richardson                                                                                                                                     020 7484 4040

Note to editors:

Domino's Pizza UK & IRL plc is the leading player in the fast-growing pizza delivery market and holds the exclusive master franchise to own, operate and franchise Domino's Pizza stores in the UK and the Republic of Ireland. The first UK store opened in Luton in 1985 and the first Irish store opened in 1991.

As at 27 December 2009, there were 608 stores in the UK and the Republic of Ireland. Of these, 481 stores are in England, 45 are in Scotland, 22 are in Wales, 14 are in Northern Ireland, 45 are in the Republic of Ireland and one is a mobile unit.

Founded in 1960, Domino's Pizza is one of the world's leading pizza delivery brands. Through its primarily franchised system, Domino's Pizza operates a global network of more than 8,700 Domino's Pizza stores in over 60 countries. Domino's Pizza has a singular focus - the home  delivery of pizza, freshly made to order with high quality ingredients. 

Customers can order from Domino's via the national hotline [phone] (Calls cost 10p per minute from a BT line. Calls from mobiles may vary) and online at www.dominos.co.uk. Orders can also be placed via SMS and to register for this service, customers should visit www.dominos.co.uk. 

For photography, please visit the media centre at www.dominos.uk.com, contact the Domino's Press Office on [phone], or call Hogarth on [phone].

 

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