• 10 October, 2017 News

    Domino’s Pizza shares soar 11% as UK trading improves
    Domino’s Pizza shares soared 11% at the start of trading today Domino’s Pizza shares soar 11% as UK trading improves

    Domino’s Pizza shares soared 11% at the start of trading today after the fast food firm unveiled a strong pick-up in UK sales.

    The company, which has previously warned for tougher times, said comparable sales in its core UK market were higher by 8.1% in its third quarter. It originally warned of these tougher times due to household budgets being squeezed.

    Its reported a record number of store openings in the 13 weeks to 24 September, taking the total figure above 1,000 in the UK for the very first time, helping sales heighten by 11.6% in the country. Meanwhile, digital sales were up by approximately 17.4%.

    The company has maintained its expansion plans regardless of caution amongst many consumer-facing businesses with Marston’s, the brewer-to-hotel operator, confirming this morning that it has cut back on its growth strategy because of “subdued market conditions”.

    The main concern for firms is an erosion of confidence- an overall consequence of the impact of a higher inflation and weaker wage growth this year following the Brexit vote.

    This morning, a report by the British Retail Consortium indicated a strong spending on essentials last month, with ‘big ticket’ items like furniture and electricals especially struggling.

    Domino’s, which was alongside the big winners in terms of growth following the financial crisis, predicted pressure on sales because customers were “worried about rising prices”.

    Although it said in its last update that demand had picked up, which has mainly been promoted by activity- though that would not affect its profit forecasts.

    Chief executive David Wild said: "We are pleased with our performance in Q3, especially the improved trend in our core market of the UK.

    He added: "In the UK, consumers are uncertain and they continue to focus on value. Our commitment to growth remains undiminished, as does that of our franchisee partners.

    "We expect to launch a record 90 stores in the UK this year, with an encouraging pipeline already in place for openings in early 2018.

    "More recently, we have seen a real surge in digital engagement, with our new advertising campaign, "The Official Food of Everything", driving a record 200,000 online orders - or 140 a minute - on the last Saturday in September.”

    To date this year, shares in Domino’s has dropped 8%, though there were 11% up on opening in the FTSE 250.

    Contact one of our brokers today at, www.forex.ltd.uk.

    Abi Moses

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