Domino's share price rises as UK sales growth holds up

 
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Sales have surged across all the group's territories (Source: Domino's)

Dominos Pizza Group shares were up nearly 10 per cent in early trading after the group reported increased sales in the UK and other European regions for the third quarter.

The figures

The group, which operates Dominos in the UK and Ireland as well as Iceland, Norway, Sweden and Switzerland, grew sales by 20.8 per cent to £286.4m.

In the UK and Ireland, the group's largest market, sales rose 12.1 per cent to £261.6m, as it opened its 1,000th store in the UK.

Elsewhere, the company integrated Norwegian chain Dolly Dimples into its portfolio, increasing pro forma sales by 84 per cent.

Read more: Domino's Pizza has announced a £15m share buyback programme

Why it's interesting

The group said despite uncertainty in the UK, its key market, it was investing in the customer proposition long-term.

One way in which the group has already done this is to take a slice of a London franchisee, which gave the company greater access to "the most important market in the UK", which it said would help to accelerate growth.

What Domino's said

Chief executive David Wild said:

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.

Read more: Domino's franchisee takes a bigger slice of Russian market

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