Domino's takes a big slice of the eating-in market

The delivery and takeaway chain, which has 608 stores in the UK and Ireland, said like-for-like sales rose 8.6 per cent in the 13 weeks to December 27, despite tough comparatives with the same period a year earlier.

It forecast profits ahead of expectations and said it had created 1,500 new jobs after opening a record 55 new stores over the last year.

As well as the trading boost from customers staying at home to watch weekend shows such as X-Factor and Strictly Come Dancing, the company said trade was boosted by the use of short-term tactical promotions.

A spokesman added that the cold weather before Christmas also helped as customers chose to stay at home rather than venture to shops or restaurants.

Domino's said it generated more business over the internet, with over a third of all orders taken online during one week in October.

Domino's is expanding heavily to take advantage of the nation's love of pizza and hopes to have 1,000 stores by 2017.

The company, which holds the rights to operate the Domino's Pizza brand in the UK and Ireland, runs stores on a franchise basis. It has so far benefited in the recession as consumers choose to eat in rather than splash out on restaurant meals. The downturn has also given it an advantage in securing improved media advertising rates. High profile marketing campaigns in recent months have included the company's sponsorship of ITV show Britain's Got Talent.

Investec Securities analyst Joe Thomas said he remained optimistic about the company's prospects, particularly given the advertising budget and the continuation of "Two for Tuesday" promotions.

He added: "Flour costs are locked in until July and any increase in inputs should be passed on to franchisees in the longer term."

Investec expects to add five per cent to its profit forecasts, from the current prediction of 28m for 2009 and 30.7m this year.