It’s cold comfort for Domino’s as weather helps to lift sales

Like-for-like sales were up by 6.6 per cent in the 13 weeks to March 31 as the unseasonably cold spring conditions caused a surge in demand and helped it overcome a snow-hit start to the year.

Sales growth had slowed to 1.6 per cent in the first seven weeks of the quarter when January’s snow and icy conditions forced nearly 500 shops to shut, but analysts at N+1 Singer said the latest figures indicated a 12.4 per cent leap in the final six weeks.

Recent price promotions and the launch of new products, such as its hot dog stuffed crust, also provided a boost, according to Domino’s.

Shares jumped six per cent after the update and N+1 Singer analyst Sahill Shan praised a “strong” set of figures.

Domino’s said orders via the internet increased again in the quarter, with nearly two thirds – 62 per cent – made online.

Delivery sales made across all online platforms rose 38.4 per cent to £82.4m, with a quarter of these made by smartphone. But Domino’s, which has 780 stores across the UK and Ireland, said it was braced for tougher conditions over the remainder of the year.

Chief executive Lance Batchelor said: “We know that the ongoing economic pressures are leading to a tough trading environment and we have extremely tough comparatives in the second quarter to overcome, as well as food cost increases coming through during the year.”

The group holds the master franchise to own, operate and franchise Domino’s Pizza outlets in the UK, Ireland, Switzerland and Germany, having opened its first UK store in Luton in 1985.

It plans to open 60 franchised stores in the UK over 2013, having launched 56 last year.

It expects to create around 150 jobs by opening five stores in Yorkshire this year.

Domino’s hopes to open another 35 stores in Yorkshire over the next eight years in response to customer demand.

It already has 39 stores in Yorkshire, which employ around 1,000 staff.

Each Domino’s outlet employs, on average, around 30 peo- ple.