Pizza delivery firm Domino's Pizza UK & IRL said today that its sales growth had accelerated in the fourth quarter and its 2011 profit would be in line with market expectations.
Domino's, which operates the British and Irish franchises of the global delivery brand, said sales at its 604 shops open more than a year were up 3.6% in the fourth quarter to December 25, with UK sales up 4% and sales in Ireland down 1%. For the year as a whole, comparable sales were up 3%.
The company has benefited from the economic downturn as customers continue to stay in and order takeaways rather than going out to eat in restaurants. Offers such as "Two for Tuesday", a buy-one-get-one-free deal, have proved particularly attractive to cash-strapped consumers.
New chief executive Lance Batchelor, who took up the role on December 26, said the company had achieved good sales growth despite toughening sales comparatives and last year's VAT rise.
"Domino's is a robust business with strong cash generation and, although the general economy is challenging, we have grown sales and opened a record number of stores," he said. The company opened 62 stores during the year giving it a total of 726.
Market expectations for Domino's full-year pretax profit range between £40.7m and £43m, with the average forecast standing at £42.1m.
Batchelor said the company's first stores in Germany, which it opened last year, were making good progress. He had said in November that the company's fledgling German operation could grow to be twice as big as its UK business.
