Hungry TV fans ring up chunky Domino's sales
Major TV 'event' shows like The X Factor and Strictly Come Dancing boosted pizza home delivery sales at Domino's at the end of last year.
Innovation: iPhone app launched last September has delivered £1m worth of orders
The firm reported a 17.8% jump in sales to £132.5m in the quarter ending on Boxing Day. Like-for-like sales growth in the period was 10.3%.
But Domino's admitted heavy snowfall and freezing temperatures in December were a mixed blessing. Customers stayed indoors and ordered food but occasionally the conditions hindered deliveries.
The company's stock rose 5p to 561p in today's trading after it said full-year results would beat City forecasts.
A Domino's spokeswoman said any major TV events are good for business as they kept people at home.
The firm has had a strong year with stellar summer sales driven by demand from World Cup fans and viewers of ITV show Britain's Got Talent – which Domino's has sponsored for three successive years.
Delivery services, as well as supermarkets, have benefited from the trend of the 'big night in', which has seen people buying affordable food and drink to consume at home rather than heading out on the town.
Domino's also reported a 63% rise in online sales in the year to December 26, while orders placed through its iPhone application, launched in September, crossed the £1m mark. An ordering app for android phones is due to be launched soon.
Special offers such as the Two for Tuesday deal also contributed to the strong performance.
The company continued its expansion plans by opening a record 57 new stores in the year to Boxing Day, including the first Domino's stores on the Isle of Man and Isle of Wight. It currently has 665 mostly franchised stores in the UK.
Chris Moore, chief executive of Domino's UK, said: 'We have again finished the year with a like-for-like performance that is ahead of expectations and, together with the improvements in our operational gearing, I am delighted to announce that the company will deliver full year 2010 profits ahead of current City expectations.'
Broker Numis Securities upgraded its forecast for annual profits in 2010 to £37.7m, from £36.5m. And analyst Douglas Jack said 2011 would be another year of strong growth.
'We believe the recent trend in e-commerce, unique online promotions and broader use of apps point towards significant long-term growth through this online channel,' he said.
Paul Hickman, analyst at broker Peel Hunt, told Reuters: 'Not even mentioning snow, Domino's has had a storming Q4. This company is one of the best managed marketing-led operations in the UK today and a core holding for any consumer-facing investment portfolio.'
Peel Hunt, which has a 'buy' recommendation on the stock, lifted its 2010 pretax profit forecast by 3% to £37.8m.
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