Domino’s Pizza share price leaps as much as 12 per cent as profit soars
Investors feasted on Domino’s Pizza shares today as the Pepperoni Passion and Mighty Meaty pizza-maker posted better than expected first half profits.
The company, which has over 900 stores in the UK and Europe, said sales increased by 14 per cent to £426.7m in the six months to 28 June while underlying operating profits jumped 30 per cent to £32m.
Domino’s said the performance was largely driven by investments it made into its UK digital operations, which in turn lifted like-for-like sales in its largest market 10.3 per cent.
Customer downloading and ordering from Domino’s mobile phone app reached a record high, with sales overtaking sales through desktop computers for the first time in its history.
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Chief executive David Wild said while he was pleased with the performance, it faces tougher comparators in the coming months against a strong performance last year.
Its German business is still operating at a loss, although losses narrowed from £4.7m to £1.8m in the first half and like-for-like sales increased three per cent.
“We have a continued programme of e-commerce initiatives and other marketing campaigns. The UK new store pipeline is solid and we are well-positioned for the future,” he said.
Shares in the company, which have risen 27 per cent in the year to date, jumped as much as 12 per cent on the news.