Domino’s steps up UK expansion plans with 1,600 store target
Pizza delivery firm says positive market outlook influenced decision
Photograph: Jonathan Brady/PA Wire
Pizza delivery firm Domino’s Pizza plans to increase its presence across the UK to 1,600 stores after seeing a strong performance from new outlets and a positive market outlook.
The firm, which expects to have 950 UK stores operating by the end of 2016, had previously been targeting 1,200.
Outside the UK, Domino’s has also identified opportunities for a total of 400 stores, excluding its German joint venture, up from around 100 at the end of 2016.
“Our continued strong e-commerce performance and our collaboration with our dedicated franchisees, enable us to increase our UK presence significantly,” said chief executive David Wild. “Internationally, our progress in Switzerland and new collaborations in the Nordic region are exciting opportunities for the business.”
Domino’s, which is hosting a capital markets day on Thursday, said it was continuing to trade well and profit guidance for 2016 was unchanged.
Analysts are on average forecasting a pretax profit of £84.3 million (€993 million), up from £73.2 million made in 2015.
The firm said re-phasing of supply chain projects mean that full-year capital expenditure will be around £20 million, less than the £33 million indicated at the half year.
Domino’s said it remains committed to the return of surplus cash to shareholders through buy-backs, but had paused the process in recent weeks because of a technical issue it is currently resolving.
Shares in the firm, down 6 per cent so far this year, were up 1.8 per cent at 335.5 pence at 0808 GMT.