Domino's Pizza delivers uptick in Q1 sales, but no longer expects international business to break even
Source - SMW
Domino's Pizza reported an uptick in group system sales in the first quarter, but said it no longer expected to break-even on its international businesses as performance remained 'disappointing'.
Group system sales were up 4.5% to £324.4m as its UK and Republic of Ireland segment reported sales growth of 4.8%, more than offsetting a 2% slide in its international segment.
UK system sales were up 4.7%, with like-for-like (LFL) sales up 3.1% and online sales up 8.5%
Our digital expertise remained a 'key driver of customer engagement, with online accounting for a record 81.7% of total sales in the UK,' the company said.
ROI system sales were up 7.4%; with like-for-like sales up 6.8% and online sales up 18.5%.
The company had previously estimated that its international businesses would post a break-even result in 2019, but that is no longer achievable.
'(G)iven persistently weak system sales in all our International markets we no longer expect this part of our business to break-even this year. We are therefore further tightening our focus on International costs and capital deployment,' David Wild, Chief Executive Officer.
The company opened 11 stores year to date, of which seven were in the UK, taking the group total to 1,271.