Domino's Pizza Q3 sales grow despite delivery slowdown

9th Nov 2023 09:10

(Sharecast News) - Fast food retailer Domino's Pizza Group said on Thursday that sales had grown in the third quarter despite it experiencing a slowdown in deliveries.

Domino's Pizza said total system sales were up 5.5%, reflecting an acceleration in new store openings, but said total orders were down 1.2% in the quarter at 16.7m. Total orders have since returned to growth, up 1.2% so far in Q4.

Delivery orders were down 6.3% in Q3 as a result of "softer demand" in the wider delivery market.

The FTSE 250-listed group stated new store openings were "well ahead of plan" with 45 year-to-date, versus 21 at the same point in 2022, with new store openings said to be trading ahead of expectations.

Domino's added that it continues to expect full-year underlying EBITDA to be within the range of £132.0m-138.0m.

Chief executive Andrew Rennie said: "Our franchisees are performing well in an uncertain market, and we are all benefitting from an aligned system.

"As we look into next year, we see inflation stabilising and our focus will be on continued customer and order growth, as well as franchisee profitability. We remain confident that our resilient, asset-light business model will deliver further financial and strategic progress, and increased returns for our shareholders."

As of 0910 GMT, Domino's shares were down 4.36% at 355.40p.

Reporting by Iain Gilbert at Sharecast.com