(Source: Western Mail)
DOMINO'S PIZZA yesterday said full-year profits were up by almost a quarter after the fast food chain grew at a rate of a store a week last year.
The firm said it planned to open a further 50 stores this year, creating at least another 1,500 new jobs in the UK and Ireland.
Domino's said profits rose to pounds 23.4m in the 52 weeks to December 28, as consumers abandoned the restaurant sector in the economic downturn and chose to dine at home.
The chain said working people were increasingly reliant on prepared food. It added Domino's has a broadening customer base as the young adults originally attracted to takeaway pizza had grown into their 30s, "taking their eating habits with them".
Domino's posted an 18.4% rise in sales in the year and said it had opened a record 52 new stores.
The Domino's announcement comes after fried chicken chain KFC said it planned an expansion which would create up to 9,000 jobs over the next five years. And fast food giant McDonald's recently said last year was its "strongest ever" in the UK despite the downturn.
Domino's, which has 553 stores in the UK and Ireland run on a franchise basis, said people wanted to "trade down" from going out for a meal but were unwilling to give up entirely on luxuries.
The pizza delivery firm said it had an "exceptional" start to 2009, with like-for-like sales for the first six weeks up 15%. It said a third of the 2.7 million people it delivered to last year were new customers.
But chief executive Chris Moore sounded a note of caution.
"While we are delighted with this performance, we face some very tough comparatives and an unpredictable economic environment," he said.
He said this year's store opening programme was "well under way" and he was "confident we are well positioned for another year of strong growth".
The company, which holds the master franchise to own, operate and franchise Domino's Pizza stores in the UK and Ireland, said its "aggressive expansion programme" meant it was on track to exceed its target of 1,000 stores in the next 10 years.
"In addition, as a result of our recent successes in smaller towns, the growing acceptance of home-delivered meals and the predicted growth in population and new housing, we now believe there is capacity for in excess of 1,000 stores in the UK and Ireland," it added.
As previously announced, Domino's online sales rose dramatically in the year, up 73.7% to pounds 55.9m and bolstered by some record weekends when sales exceeded pounds 1m.
Founded in 1960, Domino's is one of the world's best-known pizza delivery brands and has more than 8,700 stores in more than 60 countries.
Analyst Douglas Jack, of Numis Securities, said the Domino's results were ahead of expectations, adding earnings could "increase at least fourfold" over nine years. "Market demand growth appears to be picking up due to customers trading down for value food and drink," he said.
Take aways make a comeback in a huge way as purses and wallets feel the squeeze
Buckets of chicken, pizza and burgers now dominate the menu for Britain's penny-watching consumers as the recession proves the UK is still a fast food nation.
The announcement from Domino's Pizza that profits had grown almost a quarter last year, comes after a slew of upbeat results from the sector.
Consumers worried about the state of their wallets appear to be turning away from restaurants and staying at home with a take-away instead.
And while the rest of the high street struggles for survival, fast food chains are enjoying a surge in popularity.
On Monday KFC, announced plans for a pounds 150m expansion, which would create up to 9,000 jobs in the next five years, sandwich chain Subway intends to open 600 new stores in the UK and Ireland adding 7,000 new staff, McDonald's plans another 20 restaurants and bakery chain Greggs is also looking to grow.
Meanwhile Domino's expects to open 50 stores this year - adding 1,500 roles - and predicts it will almost double its number of UK and Ireland outlets in the next 10 years. By contrast, in 2006, McDonald's said UK sales had been in negative territory for a couple of years, the firm recently reported its "strongest ever" performance.
As with other fast food outlets, McDonald's has worked hard to revamp its image, adding Rainforest Alliance certified coffee and renovating its stores to appeal to a new, more discerning consumer.
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