Domino's sees online effect with orders
Nearly half of the pizzas Domino's sends out are now to online customers.
Easy online: A Domino's iPhone app has had around 300,000 downloads
A 69% jump in online sales in the last quarter means 40% of its deliveries were now to internet customers - though it also saw a slowdown in like-for-like store sales.
The company started selling pizza over the web in 1999 but relaunched its website dominos.co.uk in April, allowing customers to send orders direct to their nearest outlet by entering their postcode.
Online sales were £33m in the 13 weeks to September 26, up from £19.6m last year. Total online sales in the financial year to date were £89.9m.
Another factor was the company's new iPhone app, which is thought to have generated around 300,000 downloads since launching a few weeks ago.
The boost compensates for the slowdown in its 643 mostly franchised stores, and Domino's said it was on track to achieve profits at the high end of market expectations.
Domino's said like-for-like sales in stores were up 10% in the 13 weeks to September 26, and up 12.5% over the year. Total group sales were £115.7m.
The company said the third quarter growth, although lower than the year total, was 'particularly pleasing' as it was up against tough comparatives following the first anniversary of the launch of its popular Two for Tuesday promotion.
Domino's also maintained expansion plans with the opening of 16 new stores during the period, compared to seven last year, and said it was on course to reach its target of 55 new stores by the year end.
Earlier in the year, Domino's posted strong sales driven by demand from World Cup fans and ITV show Britain's Got Talent, which it has sponsored for three successive years.
Today's update prompted Numis Securities to upgrade its forecast for annual profits in 2010 to £36.5m, from £35.5m.
But its shares in London were down 4.7p to 467.2p.
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.
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