Domino's UK, Ireland Q1 sales up from last year

March 29, 2011

Domino's Pizza U.K. and Ireland reported first quarter 2011 results Wednesday, which included an increase of more than 11 percent from last year's Q1.

The results, though positive, were still affected by difficult trading conditions in the Republic of Ireland, which slowed growth from the company's nearly 20 percent increase in 2010 year-end numbers.

Domino's also said it is facing challenging comparatives for the rest of the year, but added that the business is well placed for further strong growth.

Highlights from Q1 include:

  • System sales up 11.2 percent
  • Like-for-like sales up 4.2 percent compared to last year
  • U.K. sales growth of 5.5 percent
  • U.K. gross sales up 7.8 percent
  • Like-for-like sales drop of 10.5 percent in the Republic of Ireland
  • Eight new stores in the quarter

"We are glad to be reporting a good performance in the U.K. The overall group numbers were, however, held back by the very difficult trading environment in the Republic of Ireland, which contributes 7.4 percent of our system sales," said Chris Moore, CEO of Domino's U.K. and Ireland.

Online sales continued to be a boon for the company, accounting for 39.3 percent of the United Kingdom's delivery sales in the first quarter, compared to 28.8 percent last year. Total online sales for Q1 increased 62.9 percent.

Looking ahead, the company plans on opening 60 new stores in 2011.

"We are up against some very challenging comparatives for the rest of the year, especially in the second quarter," Moore said. "However, with the management team that is in place, the ideas flowing through the business, new sites in the pipeline and our ever improving operational gearing, the business is well placed for further strong growth this year."

Eyeing Ukraine growth

The United Kingdom/Ireland market isn't the only plan for growth. Domino's is looking to invest $9 million in the Ukraine within the next five years, according to Interfax.

This investment should translate into the opening of between 40 and 50 new units within that timeframe. Domino's Pizza Ukraine is directed by Andriy Romanenko.

Currently there are two Domino's pizzerias in Kyiv, Ukraine.

Topics: Business Strategy and Profitability, Domino's Pizza, Financing and capital improvements, Franchising & Growth, Online Ordering, Operations Management

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