World Cup sales put pizza firm on winner

The group, which has 35 stores in Yorkshire and plans to open another 36 in the region, has outperformed throughout the recession as cash-strapped customers have opted to eat in.

Offers, such as a buy-get-one-free deal on Tuesdays, have proved particularly successful and finance director Lee Ginsberg said the company is set to benefit from continuing uncertainty among consumers about the economic outlook.

"We've had a track record of trading pretty strongly through these difficult times. If things continue to be tough, consumers are going to tighten their belts further and stay at home more. We're well placed for that," he said.

The World Cup provided a big boost and the company saw a 27 per cent increase in sales at its 35 Yorkshire stores during the four England games.

The group said that Yorkshire is a key area for future expansion. It opened a new store in Sheffield earlier this year and is looking to open two new stores in Rotherham later this year.

It has identified nine target areas in Yorkshire where it is actively looking, but declined to say where they are for competitive reasons.

Domino's said pre-tax profits rose 29 per cent to 17.5m in the half year to June 27 while sales increased by 21 per cent to 237.1m.

Sales were boosted by a combination of promotions such as the buy-get-one-free deal, the sponsorship of ITV's Britain's Got Talent and the World Cup soccer contest.

Chief executive Chris Moore said: "It is easy to try and attribute our success to one thing – be it the weather, or Britain's Got Talent, or the World Cup – but the underlying trend shows a more compelling picture."

Domino's has come to the end of its three-year sponsorship of the Britain's Got Talent show, which launched the career of singer Susan Boyle.

Mr Ginsberg said the company could decide not to renew the sponsorship if the price is too high.

"We do have first option on the renewal and talks are to start with ITV fairly soon. If it isn't a reasonable price and the increase is far too much then we may not look to do it," he said.

The group reported a 13.7 per cent increase in first-half like-for-like sales.

On the day of England's one and only victory in the World Cup, against Slovenia, sales rose by 65 per cent and peaked at a 333 per cent increase during the hours the match was on.

Domino's is looking to increase the number of outlets that have late night licenses, allowing them to stay open until 5am.

KBC Peel Hunt analyst Paul Hickman described the results as "spectacular" and lifted his 2010 pre-tax profit forecast by six per cent to 35.7m.

Domino's is paying an interim dividend of 4.5p per share, up from 3.5p the year before.

But the group warned of tougher sales comparisons in the second half of 2010.

The results prompted Numis Securities to upgrade its forecast for annual profits to 35.5m from 33.9m.

With like-for-like sales growth strengthening from 10.5 per cent in the first quarter to 17.2 per cent in the second quarter, the broker now expects a full-year rise of 8.5 per cent when tougher comparisons in the second half are taken into account.

Numis analyst Douglas Jack said the launch of oven-baked sandwiches for lunchtime customers and an increase in local marketing and national advertising should help like-for-like sales growth over the rest of the year.

He added: "We believe the risk to forecasts remains on the upside due to new initiatives which should augment recent momentum."

25 years of being in Britain

This year, Domino's Pizza is celebrating 25 years of being in the UK.

The company is one of the world's leading pizza delivery companies.

Domino's Pizza Group Limited is a wholly owned subsidiary of Domino's Pizza UK & IRL plc which is quoted on the main market of the London Stock Exchange.

The British subsidiary is the UK and Ireland's leading pizza delivery company and holds the master franchise to own, operate and franchise Domino's Pizza stores in these markets.

The first UK store opened in 1985 and the first Irish store opened in 1991.

More than 20,000 employees work in the UK and Irish stores and in a range of support functions ranging from marketing, IT and training to fresh dough production.

The majority of stores are owned by franchisees.

There are more than 620 Domino's Pizza stores in towns and cities throughout England, Scotland, Wales and Ireland.