Domino’s Pizza experienced a surge in sales and profits, leading to its best day on the stock market since December 2021. The company saw an increase in customers picking up their takeaway orders in stores, rather than opting for delivery, amidst the ongoing cost of living crisis. Collection orders were 20% higher in the six months leading up to June 25 compared to the same period last year, while takeaway deliveries declined by 4.4%. Despite the financial constraints caused by the cost-of-living crisis, Domino’s sales across its franchised and corporate stores increased by 7.9% year-on-year. Profits for the period reached £68.7 million, marking an 8.2% rise from the previous year. The company expects its full-year profit to be between £132 million and £138 million, surpassing the earlier forecast of £127.6 million. As a show of confidence, Domino’s is returning £20 million of shares to investors and plans to return an additional £70 million. As a result of these positive developments, Domino’s shares rose by 13.1% to 392.8p, the highest since December 2021. The appointment of Andrew Rennie as the new CEO has also impacted the company’s performance. Rennie brings over two decades of experience from his time at Domino’s Pizza Enterprises (DPE) in Sydney. He will replace interim CEO Elias Diaz Sese, who has been leading the company since last October. Laith Khalaf, head of investment analysis at AJ Bell, noted that the 20% increase in collection orders suggests that consumers are finding ways to save money while still enjoying their favorite food. He also praised Domino’s for capitalizing on this trend, as selling pizzas at a discounted price is better than not selling any at all.
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