Domino´s U.K.: Profit increased 33 percent in FY 2007

Milton Keynes / UK. (dp) Domino´s Pizza U.K. + Ireland PLC through its subsidiaries holds the franchise license to own, operate, and franchise Domino´s Pizza stores in England, Scotland, Wales, and Ireland. It also engages in the operation and management of franchise business; property management business; leasing of equipment; and food service business in Ireland. In addition, the company sells pizzas online. As of December 31, 2007, the largest British pizza-delivery chain operated approximately 501 stores.

In the face of increased wheat and cheese prices and fears over the economy, Domino´s Pizza U.K. + Ireland this week reported a 33 percent profit increase for the fiscal year 2007. The company attributes the 14,7 percent sales increase to consumer reluctance to eat out and a wet summer, with customers opting for pizza deliveries as an alternative. Profits rose from 4,6 million GBP to 18,7 million GBP in the year until December 31, and shareholders will see a dividend of 4,40 pence – a 43 percent increase on 2007. This trend looks set to continue too; like for like sales figures for the first six weeks of 2008 are eleven percent higher than 2006.

Having floated on AIM in 1999, the company is now planning to join the London Stock Exchange, a move welcomed by shareholders. This will coincide with a major expansion of the business. With 501 stores in the UK and Ireland already, the company wants to open at least another 50 by the end of 2008, in line with their target to have 1.000 sites by 2017. Chief executive Chris Moore: «Our store opening programme is looking more encouraging with more sites in the pipeline with planning approval than at the same time last year. This gives us optimism at this early stage that we are on track to once again achieve our target of 50 new store openings this year». Orders through the website and by text message have increased significantly too, by 61 percent in 2007 and 91 percent in the first six weeks of 2008. These accounted for 21 percent of all pizza deliveries.