Live sports and staycations boost Domino's

Domino’s Pizza has reported an 18 per cent hike in third quarter UK like-for-like sales thanks to the return of live sports on TV, the increase in British staycations over the summer and the Government’s VAT cut.

By Ros Snowdon

Published 15th Oct 2020, 08:03 BST

Updated 15th Oct 2020, 08:06 BST

Domino’s said the VAT cut on hot takeaway food from 20 per cent to 5 per cent in mid July allowed franchisees to pass on cost savings to customers and boosted sales.

Dominic Paul, chief executive of Domino’s, said: “We welcome the UK Government’s reduction to VAT in mid-July which helped franchisees mitigate costs and gave them the opportunity to pass savings on to customers.

“At the heart of our future plans is realignment with our franchisee partners and we are having detailed discussions to agree a sustainable way forward, although we continue to expect that these discussions will take some time.

“Despite the ongoing uncertain backdrop, we expect to report full-year underlying group pre-tax profits in the range of £93m to £98m, in line with market consensus.”