Posted:15-January-2007
Domino's Pizza Announcement of Trading Update & Board Promotion
Domino's Pizza UK & IRL plc ("Domino's Pizza" or "the Company" or "the Group") today announces total like-for-like sales growth of 9.7% for the 52 weeks ended 31 December 2006 (2005: 7.1%). Like-for-like sales for the six weeks to 31 December 2006 increased by 13.1% (2005: 3.6%), bringing the year to another strong close.
The Christmas period was supported by another successful product launch for Domino's Pizza. The "MeltDown", its spiciest pizza available, gave the Group a strong news platform from which to communicate with new and existing customers. The campaign served to drive sales across the menu.
The Company's e-commerce platform continues to be its fastest-growing channel to market and attracted record numbers of new customers as well as delivering an average ticket value that is typically 25% higher than orders placed by phone. E-commerce sales grew by 43.8% in 2006 and reached sales of £20.1 million (2005: £13.9 million) for Domino's in the UK.
The Company continued to deliver against its expansion programme with the opening of 46 new stores (2005: 50). During the year two stores were closed (2005: nil), bringing the year-end store count to 451.
The Company is also pleased to announce the promotion of Chris Moore from Chief Operating Officer to Deputy Chief Executive with immediate effect. Chris recently assumed board-level responsibility for the company's three commissaries and this promotion reflects his extended remit.
Stephen Hemsley, Chief Executive, commented, "Another year of strong like-for-like sales growth is attributable to our ongoing efforts to develop fresh and appealing menu options, maintain high standards in our stores and take great care of our customers. The MeltDown launch at the end of the year, in particular demonstrated that taking a fresh approach to new product development and multi channel marketing continues to strengthen our leadership of the home delivery pizza market.
"Although we did not achieve our goal of 50 new stores in 2006, we were encouraged by the accelerated openings of 25 in the second half of the year and adding 46 stores remains very good progress. I am particularly pleased that these new stores have opened with higher sales than in previous years, reflecting the additional operations and marketing support that we have provided to franchisees at launch. Securing sufficient A5 property of the right quality and location remains a challenge but one we are determined to rise to in 2007.
"The Board is delighted to further recognise Chris's major contribution to the business with this promotion. It reflects the outstanding improvements he has driven across the business, particularly in the areas of marketing and operations. I am confident that in addition he will do a tremendous job of directing the three commissaries which together constitute one of our most important income streams.
"The Board is confident that your Company will deliver full year 2006 profits ahead of current expectations and will update the market further on 20 February 2007 with the publication of the Company's preliminary results for the year ended 31 December 2006."

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