Domino’s Pizza seem to be one of the few companies reaping benefits from the recession, as people are choosing to crunch their takeaway pizzas over going out, to save some pennies. The company have announced their profits have fared much better than was predicted.
Domino’s have 553 stores across the UK and Ireland and put their sales down to the fact that people, while looking to “trade down” from eating out, still were not ready to forgo the luxury of takeout pizza.
Their sales figures up to 28 December show an 18.4 per cent increase to £350.8m, as like-for-like sales went up 10 per cent in the same time.
A spokeswoman from Domino’s commented that,
“People still want a treat but they are looking for ways to get that treat at a lower price,”
“On occasions when they might go for a meal, what we are seeing is they are getting a bottle of wine from the supermarket and ordering a pizza.”
She also added that the company’s clever sponsorship slot of popular ITV Saturday night show, Britain’s Got Talent, saw sales booming when the show was on air.
Their online sales also went up sharply during the year, with a massive 73.7 per cent increase to £55.9m which was boosted with off the chart weekends of £1m plus sales.
The company, which has sole right and franchise over the Domino’s name for stores in the UK and Ireland, saw figures slow down in the 13 weeks up to 28 December.
Panmure Gordon stockbrokers announced that the company had exceeded expectations across the key business areas and added that they would increase their pre-tax profit forecast for 2008 from £22.2m to £23m.
Andrew Saunders, a business analyst said, “Today’s trading statement confirms another superb performance by the business despite the many challenges thrown up in 2008.”
Domino’s have plans to expand across the country with a possible 1,000 outlets and chief executive Chris Moore advised he was hopeful this would happen once their first target of 50 new stores this year is met.
In total 53 new branches were created, bringing with it 1,500 new jobs, while no outlets saw any closures.
Mr Moore said, “Despite the challenging economic environment, our franchisees’ appetite for growth continues, as does our belief that the Domino’s recipe - to deliver great quality pizza with unbeatable service, supported by extensive and highly targeted marketing - is right for these times.”
The company have also kept things fresh by adding new pizzas. Five new meat pizzas added this year include Steak Special, Meatball Mayhem, Texas BBQ, American Hot and The Premiere.
Domino’s were founded in 1960 and are one of the world’s best loved pizza delivery brands, with a whopping 8,700 stores across 50 countries.
