A bigger slice of the action for Domino's Pizza as sales up 17.6%

Online pizza orders helped to drive 17

Online pizza orders helped to drive 17.6 per cent sales growth for Domino's Pizza in Britain and Ireland in the six weeks to December 30th.

Sales via a new online ordering system, which was introduced in Ireland last March, were up 102 per cent over Christmas, according to a trading update by the company. The winter surge helped to bring like-for-like sales up by 14.7 per cent for the year, against a 9.7 per cent rise in 2006.

Faster preparation and delivery also helped fuel the sales growth, said Domino's chief executive Chris Moore. Increased advertising also played a part, he said, with advertisements highlighting new products such as a ciabatta pizza. "Our franchisees pay 5 per cent of sales into a national advertising fund, so a spike in sales adds more cash to the fund. We had £13.5-£14 million in 2007, but £18 million in 2008," Mr Moore said.

Shares surged on the news, but chief financial officer Lee Ginsberg said the rate of growth was not sustainable and he expected sales growth to slow this year.

READ MORE

Total online sales in the UK for the year were 60.5 per cent higher than in 2006, reaching £32.2 million (€43.1 million).

The results should see profits increase ahead of expectations, said Mr Moore.

The company has 34 outlets in Ireland.