DOMINO’S Pizza has hailed the success of a new gourmet range and online ordering growth for a rise in sales. However, the firm’s shares fell almost 10 per cent as its growth missed targets.
The delivery firm has promoted its new gourmet pizzas via sponsorship of ITV game show Red or Black.
Domino’s increased advertising spending in the 13 weeks to 25 September as it also signed a deal with Channel 5 to allow it to sell a Big Brother-designed pizza.
But the marketing investment paid off as like-for-like sales in the UK increased 4.1 per cent in the quarter, up from 3.4 per cent in the first half of the year.
Domino’s said like-for-like sales for the group were ahead 2.9 per cent as trading remained tough in Ireland, where same-store sales dropped 4.4 per cent. The company said e-commerce now accounted for 46.6 per cent of UK delivered sales in the 13-week period, while total online sales grew 36 per cent to £45m.
Chief executive Chris Moore, who has been with Domino’s for 21 years and is due to step down in December, said: “We are pleased to have had a good quarter’s trading and, although the economy as a whole is still very tough, we have got exciting plans in place for the rest of the year.”
Analysts at Peel Hunt downgraded the firm to a “hold” in light of the update, but said the firm’s brand still has potential.