Domino’s Pizza posts 'exceptional' trading over the new year period
The delivery business has more than offset losses in collections, which is still 35% below 2019 levels
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LON:DOM
Domino's Pizza holds the master franchise to own, operate and franchise Domino's Pizza stores in the UK and Irish markets. There are over 500 Domino's Pizza stores in a growing number of towns and cities throughout England, Scotland, Wales and Ireland.
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The delivery business has more than offset losses in collections, which is still 35% below 2019 levels
The company has agreed to sell the business for £13.7mln to a consortium that includes firms owned by Icelandic restaurant owner Birgir Bieltvedt
The fast-food chain is targeting total system sales of £1.6-1.9bn per year
There were also a dozen most-prefered shares, including Wagamama owner Restaurant Group and Superdry
Full-year underlying profit before tax is expected to come in at £93mln-£98mln
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Domino’s Pizza and Dunelm Group are among the notable names in Thursday's diary.
The takeaway chain will also provide more than 1,000 work placements for young people as part of the UK government’s Kickstart scheme
The bank highlighted the pizza chain's "cautious tone around near-term trends, franchisee relationships and the international disposals” in its first half results, which pointed more towards the negative going forward
Recent trading was helped by the return of Premier League football, an increase in UK holidays and the VAT reduction on hot food
The broker also said they expected cash flow at the pizza chain “should be strong” and they expected relations with its franchisees to improve
The analysts expect competitive pressures to lead to negative earnings growth in 2020 and “lacklustre at best” thereafter
Despite the sales rise, the pizza maker said the costs of implementing protection measures for customers and employees meant its first half earnings were now expected to be lower year-on-year
Domino’s is still involved in a long-running dispute with its major UK franchisees over how profits are divided
The pizza chain said the current growth in delivery is “more than offsetting” loss of in-store collection sales
Matt Shattock is currently the non-executive chairman of Beam Suntory Inc, the maker of Jim Beam bourbon and Courvoisier cognac
The Norwegian business was offloaded last month while the issues with UK franchisees remain
Domino's Norway will be taken by two minority shareholders for around £10mln, analysts expect
The chain said operating profit for the UK and Ireland will be in line with market expectations while international operations bar Germany will be excluded from underlying results
David Wild, Domino's chief executive officer, said: "We are all deeply shocked and saddened by this tragic news”
“After 21 years in the business, now is the right time for me to step back and focus on other interests.”