Domino's Pizza Group PLC (LSE:DOM), the UK’s master franchise of the US chain, is relying on a strong pipeline of new stores, cheap lunches and an uptick in digital sales to achieve its targets for the year.
Sales during the group’s first quarter slipped by 0.5% compared to 2023’s figures, with total orders dropping by 0.8%.
Nevertheless, the pizza company is confident of achieving its full-year profit and sales targets.
One way the group is hoping to drive sales is through new store openings, with 14 sites newly up and running during the current financial year.
A further 38 locations are either in construction or planning has been approved, helping the group with its overarching plan to open more than 70 stores this financial year.
A process is also underway for the group to sell its 31-strong London corporate store estate, which is likely to result in them being picked up by existing or new franchises.
Domino’s Pizza Group also launched a £4 lunch offer last month, offering customers smaller meal sizes at an attractive price point, helping it access sales during a new time in the day.
“We launched our new £4 lunch offer in April, giving our customers an incredible value lunch option, and we're encouraged by the early reaction,” Andrew Rennie, chief executive at Domino’s Pizza Group said.
Sales have also been helped by its digital offering, with 37% more customers ordering through the app compared to a year ago.
In addition to the growth of in-app sales, Domino’s has also developed a partnership with Uber Eats and now works with the delivery service in 1,170 of its stores.
Rennie added: “Our trial with Uber Eats has meaningfully accelerated, our loyalty trial is progressing well… and we have some exciting events such as the Men's Euro football tournament coming up."