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Food & drink

Domino's Pizza profits bubble up on online orders

Pizza chain racks up nine quarters in a row of double-digit like-for-like UK sales

Domino's Pizza (LON:DOM) served up higher profits and dividends but said it would face a challenge to match last year's performance in 2016.

Domino's said nine quarters in a row of double-digit like-for-like UK sales drove an 18% rise in pre-tax profit to £73.2mln on a 10% increase in revenue to £316.8mln in the year to December 27.

The chain said online sales now made up 77.7% of all delivered sales and smartphone app sales were now the group's biggest distribution channel, representing 48.6% of online sales.

Chief executive David Wild said 2016 had begun well, with like-for-like UK sales in the year to date rising 16.1% against a year ago, although he was cautious.

"We have made an encouraging start to 2016, although we are conscious of increasingly tough comparatives through the rest of the year," he said.

Nevertheless, the chain increased its total annual dividend by 18.6% to 20.75p per share. It also said it was ready to resume share buybacks.

It opened 61 shops in 2015 versus 40 in 2014 and expanded in Germany by buying Joey's Pizza, the country largest pizza delivery chain.

Group underlying operating profit rose 16.6% to £73.2mln and basic earnings per share on continuing operations lifted about 20% to 35.7p.

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