Domino’s Pizza: Firm back on track as sales outpace estimates
Domino’s Pizza has reported a return to positive sales growth as the firm’s efforts to improve the customer experience have paid off.
The fast-food chain told markets this morning that orders grew by 3.5 per cent in the third quarter to 17.4m. This was driven by deliveries rather than collections, with the former up 6.6 per cent.
Earlier this year, the company’s share price slumped after it announced earnings were likely to fall at the lower end of its guidance for the year.
Total sales rose by three per cent in the third quarter, compared to a drop of 0.9 per cent in the second quarter.
The average delivery time of an order was 24 minutes, a minute quicker than a year ago, while the company’s consumer base has risen five per cent year on year.
Domino’s Pizza expects to open 50 to 60 new stores in 2024 and is on track to open its 1,400th store next year.
Chief executive Andrew Rennie said: “We’ve got great momentum in the business which reflects the intense focus from all of us at Domino’s and our brilliant franchise partners on driving growth in delivery orders, our biggest sales channel.
“We’re focused on growing our like-for-like sales in a sustainable way, primarily driven by order growth and not pricing, meaning lower ticket prices for customers and sustainable like-for-like sales growth driven by volume.
“In an uncertain environment we are well placed to continue our strategic progress due to the strength of the Domino’s brand and system. We continue to assess additional value-enhancing opportunities to build a larger, more cash-generative business which delivers strong and consistent returns. I look forward to updating shareholders further on our strategic progress at the full year results next March.”
Domino’s Pizza held its guidance for the full year.