Proactive Investors - Shares Domino's Pizza Group PLC (LON:DOM) rose 7% after the company announced a £70mln share buyback programme and an increase in its annual profit forecast.
The uptick in orders and sales in the first half of the year has given the company reason to be optimistic, despite ongoing economic uncertainty.
Total orders for the first half of the year grew by 2.8% to 35.4mln, contributing to an 8.2% rise in underlying EBITDA to £68.7mln.
The company, a franchisee of US-based Domino's Pizza Inc, now expects to see an underlying core profit of about £132mln-£138mln for the year, above the Reuters analysts' expectations of £127.6mln.
Interim chief executive Elias Diaz Sese expressed confidence in the opportunities for Domino's in 2023, citing resilient customer spending as a factor in the UK hospitality sector's gradual recovery from pandemic lows, despite pressures from high costs.
At 9.45 am, the shares were changing hands for 372p, up 24p.
City broker Peel Hunt said Domino's is in "great shape" as it repeated its 'buy' recommendation and 375p a share price target.
In a short research note, it told investors: "The company is generating a significant amount of cash, and there is scope for increasing the amount of cash that is returned to shareholders."