Ireland takes a slice out of Domino's sales

Domino's Pizza today admitted sales growth from its outlets a year or more old had slowed due to declines in struggling Ireland but said its UK operations were still growing strongly.

The company, which operates the British and Irish franchises of the global delivery brand, said like-for-like sales were up 4.2% in the 13 weeks to March 30 against 4.7% seen in the first seven weeks of that period. Total sales rose 11.2% to £132.3 million.

Sales at shops open more than a year were up 4.2% during the period, a slowdown on the 4.7% increase seen in the first seven weeks dragged down by a poor performance in Ireland, where trading conditions have deteriorated reflecting the country's economic woes.

Sales at shops open in the UK for more than a year were up 5.5%, excluding the impact of January's VAT rise. Including the rise, they rose 7.8%. Sales at shops open more than a year were down 10.5% in Ireland.

Domino's, which runs over 650 stores in Britain and Ireland on a franchise basis, has benefited through the economic downturn from customers staying in and ordering takeaways rather than going out to eat in restaurants.

Offers such as "Two for Tuesday", a buy-one-get-one-free deal, have proved attractive to cash-strapped consumers.

However, it is facing tougher year-on-year comparatives as it overlaps double-digit sales growth last year coinciding with the introduction of "Two for Tuesday" last Spring.

"We are up against some very challenging comparatives for the rest of the year, especially in the second quarter," Chief Executive Chris Moore said.

"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."