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(Alliance News) - Domino's Pizza Group PLC on Wednesday said first quarter trading was in line with expectations, with like-for-like sales falling, while it expects the second quarter to be "another tough" period.
Milton Keynes, England-based Domino's Pizza Group is the master franchise holder in the UK and Ireland for US pizza delivery brand owner Domino's Pizza Inc.
First quarter like-for-like sales were down 0.5% from a year earlier, with total orders down 0.8% to GBP17.7 million. System sales were down 0.4% to GBP385.1 million.
Domino's Pizza Group blamed a slow January, but noted "positive" sales and orders across February and March.
On a two-year comparison basis, first quarter like-for-like sales were up 8.4%.
Domino's Pizza Group opened 14 new stories in the period, compared to 15 a year earlier. It also noted a "strong" pipeline of 38 stories in construction or planning approved, and that it still expects to open over 70 stores in 2024.
It noted "continued" digital progress in the first quarter, as app orders as a percentage of total orders were up 11.3 percentage points from a year earlier, alongside a 37% increase in app customers.
Meanwhile, Domino's Pizza Group said it was "at an advanced stage" in the process of selling its London corporate store estate to a select number of existing and new franchisees. It said this would allow it to reallocate capital within the business.
Looking ahead, Domino's Pizza Group said the second quarter represents "another tough comparative period, and that trading in April was slower on account of the strong comparator.
It did say, however, that it expects to benefit the men's Euro 2024 football tournament, which begins in June.
"We remain resolutely focused on executing our strategy and have made strong progress in [the first quarter], both across the core UK & Ireland business and with our strategic growth ambitions. Following a slow January in part as we tactically held back marketing spend, I am pleased that we saw positive like-for-like sales and orders across February and March in an uncertain market," said Chief Executive Officer Andrew Rennie.
"Like [the first quarter], [the second quarter] is another tough comparative period but we remain confident of delivering order count and like-for-like sales growth this year and are pleased to confirm our full year profit guidance...We have a fantastic pipeline of initiatives across our UK & Ireland business driven by real energy from our colleagues and our franchisees."
Shares in Domino's Pizza were down 0.7% to 323.60 pence each in London on Wednesday morning.
By Greg Rosenvinge, Alliance News senior reporter
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