DOMINOS Pizza has seen its profit surge by 27 per cent – but sales started to slow in January.
The company, which operates the British and Irish franchises of the global delivery brand, said sales growth at shops open more than a year slowed to 4.7 per cent in the first seven weeks of 2011 compared with an 11.9 per cent increase throughout 2010.
Meanwhile finance director Lee Ginsberg said its sponsorship of Britain’s Got Talent was set to end after it failed to agree terms with broadcaster ITV over extending the deal.
“It’s fair to say we won’t be sponsoring that going forward. ITV was looking for an outrageous amount to renew that,” he said. Domino’s said the current sales performance came against a “backdrop of exceptional comparatives from the same period in 2010 and the current difficult economic climate”. Panmure analyst Simon French said: “It is the weakest number we can recall over the last five and a half years. Comparatives will only get harder over the rest of the first half as
the football World Cup had a very positive impact on the second quarter last year.”
The company delivered on average a million pizzas a week to households in Britain and Ireland in 2010.
The company has seen rapid sales increases through its iPhone app.