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Domino's Pizza sees upbeat full year, shares hit record high

Published 14/10/2015, 08:33
© Reuters. A Domino's Pizza is pictured in its box in central London
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(Reuters) - Britain's biggest pizza delivery firm Domino's Pizza Group Plc (L:DOM) said it expected full-year results to be ahead of its expectations after a surge in online sales boosted its third quarter.

Shares in the company jumped more than 14 percent to a record high of 1016 pence in London on Wednesday morning. It was the top gainer on the FTSE-250 Midcap Index in early trading.

The group, which has over 800 stores in the UK but also operates in Ireland, Switzerland and Germany, said UK like-for-like sales rose 14.9 percent for the 13 weeks to Sept. 27.

The company said it was on track to open at least 50 stores in the UK during 2015.

Domino's said there was huge demand for its mobile app and revamped website, which customers were increasingly using to order their pizza, sides and drink bundles.

Almost 75 percent of delivered sales were placed online in its third quarter, with more than half of these placed through the app on android or IOS devices.

Analysts at Numis Securities forecast pretax profit rising 24 percent over the full year, with UK like-for-like sales gaining 10.5 percent. The brokerage has a "buy" rating on the stock with a target price of 1100 pence.

The company maintained its interim dividend at 5.67 pence per share.

© Reuters. A Domino's Pizza is pictured in its box in central London

The stock had risen about 26 percent this year up to Tuesday's close, valuing the business at 1.5 billion pounds.

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