New stores and online sales send Domino’s share price up 10%
Domino’s Pizza reported stellar results for its third quarter on Tuesday, sending its share price up by 10%. The company said that new stores and the addition of innovative and interesting items – like the bizarre sounding chocolate-covered pizza – to its menus were drivers of growth. So were rising online and offline sales.
Domino’s, which is the UK’s largest pizza delivery firm, said that sales in the quarter rose by almost 21% to £286.4 million. Investors responded positively to the news, and sent the share price up by 10%.
Domino’s share price has risen by 31% so far this year
SOURCE: Yahoo Finance
In the UK, sales saw a boost of 8.1% at stores that were open for more than a year. Online sales in the country, however, rose more spectacularly, ascending by 17.4%. These strong results carry on from a positive first half of the year: in July, Domino’s reported that it had seen a 9% increase in profit over the first six months, which was helped by 40 new stores and a new menu.
Going forward, the group is focusing on speeding up its growth, and plans to open 90 stores in the UK this year. It reiterated that, despite an uncertain consumer environment, demand for delivered food remained high in the country.
Dominion holds Domino’s Pizza in its Global Trends Managed Fund.
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