Domino's Pizza sales grew by six per cent year-on-year across the UK and Ireland this summer despite the hot weather, it revealed today, but the fast food brand also cut back its full year forecast for pre-tax profits.
Online sales were up by 11.4 per cent – comprising 78 per cent of total sales in the period – while the pizza chain opened a further 20 franchise stores, it said in a third quarter trading update today.
The high street retailer launched a share repurchase programme to allow the buyback of up to £25m of ordinary shares.
The firm also announced that it is is expecting a £6m charge in the second half of the year connected to the consolidation of its Warrington and Penrith supply chain centres.
Meanwhile, Domino's also said that pre-tax profit will land in the middle of the range of market expectations, between £93m and £99.6m.
Previous guidance had suggested the pizza parlour could earn between £95.9m and £101.4m by August.
Across the rest of Europe, overall sales growth was up 5.8 per cent, and the company expects to break even for the full year.
The UK and international update comes days after the company reported a smaller-than-expected increase in sales at company-owned stores in the US.
“Our businesses continue to trade well, despite the evident uncertainty among UK consumers, and hot weather across Europe for much of the quarter," said Domino's chief executive officer David Wild.
"I’d like to thank our franchisees for their ongoing commitment to the development of the Domino’s brand, with the opening of a further 20 stores in the UK this quarter; we are confident of reaching 60 stores for the year.
"In our international operations, we are making good progress on refining the operating model and cost base, and we expect group underlying profit before tax for the 2018 year to be in the middle of the range of market expectations.
"In addition, given the strength of our balance sheet and the highly cash generative nature of the business, the board has approved a further £25m of share buybacks, to commence immediately.”