Domino’s delivers solid first quarter results and looks ahead to busy Euros
Domino’s Pizza has posted first quarter earnings in line with expectations, having recovered from a difficult start to the year in January.
Like-for-like sales for the three months to the end of March were down 0.5 per cent compared to the strong previous year, and total orders were also down 0.8 per cent, from 17.8m to 17.7m.
On a two-year basis, first-quarter like-for-like sales were up 8.4 per cent, an indication of the strength of its 2023 performance, which bosses described as a “tough comparative period”.
Andrew Rennie, Domino’s chief executive officer, said: “We remain resolutely focused on executing our strategy and have made strong progress in the first quarter, both across the core UK and Ireland business and with our strategic growth ambitions.
“Following a slow January, in part as we tactically held back marketing spend, I am pleased that we saw positive like-for-like sales and orders across February and March.”
Domino’s posted a bumper 2023 after reporting several years of inconsistent performance. It recently announced it would be adjusting its approach to store location to reflect modern working habits, targeting villages, as well as the towns and city takeaway fronts with which it’s most associated.
The second quarter looks set to be another tricky period for the firm given its success last year, but it cited major events like the Euros, its new four-pound lunch deal, and several openings as grounds for confidence.
Elsewhere, the group recently completed an investment in DP Poland, the franchisor of the Domino’s brand in Poland and Croatia. The company said this investment “represented a unique opportunity to re-enter international markets in a disciplined, capital light manner, and in partnership with a high-performing business, operated by an experienced management team.”
It maintained its profit guidance for the year.