Markets

Domino's Pizza Q3 Group System Sales Rise; To Exit International Markets

(RTTNews) - Domino's Pizza Group Plc. (DOM.L) reported Thursday that its third-quarter group system sales increased 3.4 percent to 313.5 million pounds from 303.3 million pounds last year. Organic growth was 3.5 percent.

In its trading update, the company said UK & ROI system sales grew 3.9 percent from last year to 288.2 million pounds.

UK system sales went up 3.9 percent, and LFL sales excluding splits went up 3.0 percent. ROI system sales grew 2.4 percent in local currency, while LFL sales excluding splits went down 0.7 percent.

UK online sales grew 7.2 percent and ROI online sales grew 9.9 percent. Online now accounts for 90.9 percent of delivery sales.

Meanwhile, International system sales dropped 2.7 percent to 25.3 million pounds. Organically, international system sales were flat.

The company further said that the search process for the new CEO continues and the process for the new Chair, led by Ian Bull, has commenced.

Citing the disappointing performance of international business, the company said its Board has decided to exit the four markets in an orderly manner. Over the past six weeks, the company completed a review with external consultants, assessing each of its four international markets and the future prospects for businesses.

"We have concluded that, whilst they represent attractive markets, we are not the best owners of these businesses," the company said.

David Wild, Chief Executive Officer, said, "Normal working practices continue to be impacted by our franchisee dispute. As we said at our interim results, this situation is complex and we expect a resolution to take time, certainly into 2020."

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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