Domino's aims for bigger slice in region

PIZZA delivery firm Domino's yesterday revealed long-term plans to double the number of its Yorkshire stores after reeling in £30m profits and enjoying a strong start to 2010.

The group has 608 stores after opening 55 sites in 2009.

The new stores, which are run on a franchise basis, created 1,600 jobs in 2009, taking the total number of employees in the business to 20,000.

Domino's has 34 Yorkshire stores. It plans to open another nine stores in the region over the next three years, in addition to a store in Sheffield which will open in mid to late spring.

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In the longer term, the company plans to open another 35 stores around Yorkshire.

A spokesman said: "Many of these are locations that aren't quite ready yet in terms of market size."

Chief executive Chris Moore said there were a significant number of new franchisees wishing to enter the Domino's system, while its growth plans have been fuelled by the availability of "good properties at sensible rents".

The recent strong performance reflects the cold weather and the popularity of television shows such as X-Factor as customers opt to stay at home.

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Like-for-like sales were up 11 per cent in the first six weeks of the year, despite the snow causing large number of stores to stop deliveries.

Pre-tax profits increased by 27.8 per cent to 29.9m in the year to December 27, following like-for-like growth of 8.4 per cent in 501 stores open for more than a year. Shares dipped as Mr Moore offset the positive news over the recent sales performance by warning of uncertain trading conditions.

He said: "While we are delighted with this early performance, we face some very tough comparatives particularly in the second half, and an unpredictable economic environment."

A note from analysts at Altium Securities said: "Domino's excellent preliminary results, once again ahead of recently increased

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expectations, are augmented by what can only be described as exceptional current trading.

"Domino's is in great shape, current momentum is very strong and although the group faces tough comparatives over the year ahead we remain confident that it will surpass them."

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