Mobile orders boost Domino's

DominosOnline and mobile sales helped Domino's Pizza serve up 4% like-for-like sales growth over the heatwave summer.

Shares rose 5% in the FTSE 250 Index as the fast food firm announced total UK sales of £140.9 million for the three months to the end of September.

Online revenues were up 19.8% to £72.3 million, including a doubling in income from mobile orders. It means digital sales now account for 62.4% of UK deliveries.

Meanwhile, Domino's has launched a major TV advertising campaign and begun a promotional tie-in with The X Factor online app.

The group's UK store openings target for the financial year has fallen from 60 to 50 as chief executive Lance Batchelor said the introduction of a new store design had delayed the programme.

During the summer, Domino's announced that its fledgling operation in Germany, where it has 25 outlets, would not break even until 2016 or 2017 after it decided to proceed more cautiously with its plans.

In its latest update, the group said it was making good process transferring most of its stores in the country to franchisees.

Like-for-like sales were up in Ireland and Switzerland.

Mr Batchelor said: "I am pleased to report another quarter of solid like-for-like sales growth across all four of our markets."

The group has 833 outlets including 746 in the UK.

Canaccord Genuity analyst Wayne Brown said there were increasing concerns about Domino's opening programme "creaking significantly".

But N+1 Singer's Sahill Shan said the update showed the UK business continued to be in good shape and on track to deliver another year of double digit revenues growth.