Domino's Pizza growth slows in first quarter

30th Mar 2011 07:08

Growth continued to slow at Pizza delivery company Domino's Pizza, blamed on tough comparatives and weakness in the Republic of Ireland. Like-for-like sales in 608 mature stores rose 4.2% in the 13 weeks to 30 March, down from 10.5% a year ago. They'd risen 4.7% in the first seven weeks and 11.9% in 2010.In the UK, like for like sales increased by 5.5% and by 7.8% including VAT, but they fell 10.5% in the Republic of Ireland.System sales were up 11.2% to £132.3m and could receive a boost during 2011 if the company hits its target of opening 60 new stores. "The operational gearing remains strong, underpinning the financial strength of the company," it said. "We are up against some very challenging comparatives for the rest of the year, especially in the second quarter," wrote chief executive Chris Moore in today's statement."However, with the management team that is in place, the ideas flowing through the business, new sites in the pipeline and our ever improving operational gearing, the business is well placed for further strong growth this year." LW