UK's Domino's gets boost from pizza demand during World Cup
Domino's Pizza Group Reports Strong First-Half Performance
Profit Growth Driven by World Cup and New Products
Aug 4 (Reuters) - Domino's Pizza Group reported a 3.6% rise in first-half profit on Tuesday, helped by solid demand for its pizzas during the soccer World Cup and new products like Chick 'N' Dip.
Such new products helped offset broader constraints in consumer budgets due to the surge in energy prices driven by the Iran war.
CEO's Outlook and Strategic Positioning
"We have carried positive momentum into July and, with our major cost lines hedged through 2026 and into next year, remain confident in delivering our full-year expectations," CEO Nicola Frampton said a statement.
The group operates under the umbrella of U.S.-based Domino's Pizza in the UK and Ireland.
Market and Industry Context
Impact of World Cup on Retail Sales
Official data last week showed British retail sales were boosted in June by the soccer World Cup, thanks to England's good run in the tournament, as fans spent on food and other things despite concerns over the cost of living.
Analyst Perspective
"The earnings profile laid out looks much brighter and secure than at any time in the last five years," Panmure Liberum analyst Wayne Brown said.
Financial Highlights
Share Performance
Domino's shares, which have gained nearly 18% so far this year, were up about 1.8% at 207.8 pence as of 0802 GMT.
EBITDA and System Sales
Underlying EBITDA
The group posted underlying EBITDA (earnings before interest, tax, depreciation and amortisation) of £66.2 million ($88.86 million) for the 26 weeks ended June, above the £63.9 million reported a year earlier.
Total System Sales
Total system sales - a term used in the franchising industry to represent sales of all outlets that use a brand name - came to £825.3 million in the first half, up over 6% year-on-year.
($1 = 0.7450 pounds)
(Reporting by Prerna Bedi in Bengaluru; Editing by Nivedita Bhattacharjee and Susan Fenton)
