Domino's Pizza reports Q4 performance ahead of expectations
Source - SMW
Domino's Pizza's group system sales rose by 18.2% to £321.8m in the fourth quarter with UK system sales up 9.8% and UK like-for-like sales up 6.1%.
UK & ROI system sales were up 10.1% in the quarter, or 9.9% excluding currency effects.
The upbeat performance in the UK was driven by solid acceleration in digital business, as online sales rose 14.5% year-on-year, representing 77% of system sales in the fourth quarter.
UK system sales rose 9.8%, with new store openings and like-for-like performance both contributing strongly, while like-for-like sales growth, excluding stores in split territories, was 6.1%, driven by strong order growth.
The company said it opened 37 stores in the UK during the fourth quarter, taking the total for 2017 to a record 95, with total outlets rising to 1,045 outlets by the period end.
ROI system sales were up 12.0% on a constant currency basis. Like-for-like sales grew 10.4% as a further new store was opened in the fourth quarter, taking the total to 49.
The company said 'Q4 performance has been ahead of our expectations and we have offset some of our margin investment with good volume growth.'
'As a result we now expect full year underlying profit before tax to be slightly above the current range of market expectations.'
'We expect capex for the 2017 year to be between £45 million and £50 million, below the previously guided range of £50 million to £60 million, mainly as a result of phasing in relation to the Warrington supply chain centre.'
At 8:28am: (LON:DOM) Dominos Pizza Group PLC share price was +12.15p at 362.65p