Domino’s shares climb despite slipping profits

The share price of Domino’s Pizza (LON:DOM) has risen by 5.06% to 244.90p (as of 11:45 GMT) following the announcement that group sales rose by 9% during the year ended 30th December. However, statutory pre-tax profits fell by 24% due to international impairments, and the costs of transforming its UK supply chain.

CEO David Wild commented: “2018 was a mixed year. In the UK and Ireland, which account for around 90% of the business, we extended our excellent track record of growth and cash generation, responding well to the very challenging environment for the casual dining market. Our franchisees opened 59 new stores, creating more than 2,000 jobs and sold a record 102 million pizzas. We also continued investing for future growth in digital and by successfully completing our new Supply Chain Centre in Warrington, our most significant investment to date, which supports our target of 1,600 stores in the UK.

“Internationally, we have experienced some growing pains which have hampered our overall financial performance. These are all good markets, with more than 100 million population, good appetites for pizza and little, if any, global brand competition. This is why we have strengthened our management teams and are committing disciplined capital to support future development. We expect an improved performance from International, with the business targeted to break even this year.

“I would like to thank our highly talented colleagues and franchisee partners for their ongoing dedication to the brand and our customers“.