Domino’s sales disappoint the City

Pizza delivery firm Domino’s served up a 27 per cent rise in annual profits yesterday but revealed its record of double-digit sales growth came to a halt in January.
By The Newsroom
Published 16th Feb 2011, 06:00 BST

The group reported a slowdown in sales growth since the start of its new year, with like-for-like sales up 4.7 per cent in the first seven weeks.

This marks a sharp drop on the rate of 10.3 per cent seen in the previous quarter when the snow and hit TV shows such as The X Factor and Strictly Come Dancing kept customers at home.

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Its recent sales slowdown was met with disappointment in the City after the 11 per cent rise seen in the same period a year earlier.

Shares dropped more than 6 per cent despite underlying pre-tax profits rising to £38m in the year to December 26, up from £29.9m.

Hugh-Guy Lorriman, an analyst at Seymour Pierce, said Domino’s had continued to produce “stellar” results.

Domino’s said the current sales performance came against a “backdrop of exceptional comparatives from the same period in 2010 and the current difficult economic climate”.