UK's Domino's counting on soccer World Cup to boost pizza sales
Reuters
Published Nov 10, 2022 02:43AM ET
Updated Nov 10, 2022 05:52AM ET
By Prerna Bedi
(Reuters) -Domino's Pizza Group Plc said on Thursday sales in the key holiday quarter were off to a positive start and the fast-food chain is pinning hopes on the FIFA World Cup to drive revenues further despite a squeeze on consumer finances.
The company, a franchisee of U.S.-based Domino's Pizza (NYSE:DPZ) Inc, also reiterated its full-year profit expectation of 125-135 million pounds ($142.3-$153.6 million).
"I'm pleased that we have made a strong start to our important final quarter ... We're looking forward to our busiest weeks of the year with the men's football World Cup and the festive season to come," Interim Chief Executive Officer Elias Diaz Sese said in a statement.
Big-ticket sporting events have driven demand and sales for the company in the past - such as the Men's Euro soccer tournament last year.
The 2022 World Cup, which begins on Nov. 20, is expected to be watched by 5 billion people.
Like-for-like sales excluding VAT rates rose 10.4% in the first six weeks of the fourth quarter, ending on Dec. 25, the company said.
Its shares were up 2.8% at 251 pence by 1020 GMT after falling as much as 2% earlier.
The firm added that current-quarter sales were partly buoyed by its initial rollout on the food delivery platform Just Eat, which would now be made widely available, helping it reach more customers at a time when they face a deepening cost-of-living crisis.
Third-quarter system sales across its stores in the UK and Ireland fell about 8%, hurt by higher value added taxes and as fewer people ordered in, but overall sales were still above pre-pandemic levels.
The London-listed firm also announced a share buyback of 20 million pounds after it exercised an option to sell its investment in Germany and improve its cash position.
($1 = 0.8787 pounds)
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.