Domino's cashing in on demand for pizza online

The listed operator of the US group's British and Irish franchises yesterday reported a 10 per cent rise in like-for-like sales in the 13 weeks to 26 September.

It said 40 per cent of its deliveries were now to internet customers after enjoying a 69 per cent jump in online sales in the quarter.

The company, which started selling pizza via the web in 1999, relaunched its website, dominos.co.uk, in April and said sales have rocketed ever since. The website allows customers to send orders direct to their nearest outlet by entering their postcode.

Online sales totalled 33 million in the 13 weeks, up from 19.6m last year. Total online sales in the financial year to date were 89.9m, Domino's added.

Although like-for-like sales growth at its stores business, which numbers more than 600 outlets, eased in the third quarter, the group assured investors it would bank profits towards the top end of market expectations. Analysts predictions for full-year pre-tax profit range between 33.5m and 36.6m.

Domino's also maintained expansion plans with the opening of 16 stores during the period, compared to seven last year, and said it was on course to reach its target of 55 additional branches by the year end.

Earlier in the year, the group posted strong sales driven by demand from World Cup fans and ITV hit show Britain's Got Talent, which it has sponsored for three successive years.

Yesterday's update prompted Numis Securities to upgrade its forecast for annual profits in 2010 to 36.5m, from 35.5m.

Analyst Douglas Jack said: "We believe a similar favourable outcome is likely in 2011, driven by extended trading, online ordering, growth in local marketing and national advertising, margin growth and strong demand from franchisees to open new stores."

The company holds the master franchise to own, operate and franchise Domino's Pizza stores in the UK and Ireland. The first UK store opened in Luton in 1985 and the first Irish store opened in 1991.