Domino's keeps growth targets despite falling Q1 sales

(Sharecast News) - Like-for-like sales at Domino's Pizza Group declined year-on-year in the first quarter as anticipated, but the company said it still expects to return to growth over 2024. The UK-based master franchise of the global takeaway chain reported system sales of £385.1m in the first quarter, down 0.4% on last year. On a comparable basis, like-for-like sales were down 0.5% and total orders fell 0.8% at 17.7m, though trading improved in February and March after a slow January when it "tactically held back marketing spend".

However, the second quarter faces tough comparatives, with trading in April reported to be "slower".

The company said it continues to drive initiatives to improve trading momentum, such as a £4 lunch offer, continued acceleration of a trial with Uber Eats and the upcoming expected positive impact from the Euro 2024 football that kicks off in June.

The company opened 14 new stores in the period and still expects to open more than 70 across the full year.

"As a result, we remain confident that our focus on our strategic priorities will deliver order count and like-for-like sales growth in FY24 and are reiterating our FY24 EBITDA guidance," the company said in a statement.

Chief executive Andrew Rennie said: "I'm excited by the momentum we have in the business. We have a fantastic pipeline of initiatives across our UK and Ireland business driven by real energy from our colleagues and our franchisees."