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Thu 8th Mar 2018 - Update: Domino’s results, Tossed acquires Vital Ingredient
Domino’s Pizza reports UK like-for-likes up 7.1%: Domino’s Pizza has reported UK like-for-like sales are up 7.1% in the first eight weeks of 2018 with system sales increasing 10.9%. The company said it planned to open between 65 and 75 new UK stores this year and plans share buybacks of £50m, including the £18m already completed. It has capex for 2018 of about £30m, reflecting completion of Warrington, corporate store roll-out and supply chain centre investments in international markets. The company also reported UK like-for-like sales increased 4.8% for the year ending 31 December 2017. The company saw UK systems sales grow 8.6% with UK and Ireland system sales up 9.2% to £1.1bn. It had a record number of new UK stores – 95 (2015: 81). Domino’s Pizza said its new Warrington facility would open this spring. It reported continued success of digital investment programme in the UK with online now representing 75% of system sales. Total revenue was up 29.3% to £474.6m while group system sales increased 15.1% to £1.16bn. The company also reported improving system sales performances in international businesses. The Republic of Ireland delivered 10.8% year-on-year growth as it opened its first stores in the country for six years. Switzerland delivered 15.7% year-on-year growth and has plans for further openings in 2018. In Norway, like-for-like sales were up 13.5% and it expects to complete a further ten conversions in 2018 having acquired Dolly Dimple’s last year as well as opening further greenfield sites. The integration process of stores in Germany following the Joey’s acquisition is complete and once the Hallo Pizza stores have been converted, Domino’s Pizza will operate a portfolio of more than 300 sites in the country. Chief executive David Wild said: “2017 has been a year of significant progress for Domino’s, despite the weaker consumer demand and cost inflation affecting the sector. Given this backdrop, I am particularly pleased with our performance. In the UK, system sales broke through £1bn for the first time, helped by a record 95 new store openings. We also took action to improve value for customers, and this led to improved growth in the second half, benefiting shareholders and franchisees alike. Our international operations are becoming a more material part of the group. In Ireland and Switzerland, system sales growth accelerated, supported by very strong digital performance. In the Nordics, the move to majority control and the acquisition in Norway demonstrate our increasing confidence in the opportunity. We continue to take a rigorous approach to capital allocation, balancing the long-term needs of the business with more immediate returns of value to shareholders through the ordinary dividend and share buybacks. The market continues to be competitive but the strength of our brand and scale, combined with the expertise of our franchisees, are important competitive advantages in delivering quality, convenience and value to customers. We continue to take share in the pizza delivery market, and the investment in our new supply chain centre in Warrington will leave us well placed to meet our ambition to get to at least 1,600 sites. I remain confident in the long term growth potential of the business.”
Tossed acquires Vital Ingredient: Healthy eating brand Tossed has acquired healthy grab-and-go retailer Vital Ingredient for an undisclosed sum. Vital Ingredient, which has 13 stores, specialises in made-to-order salads and soups. The combined group will operate from 38 locations across London, the Welcome Break service stations and Dubai. Vital Ingredient was acquired by FCFM Group from administrators in January this year. Tossed founder and managing director Vincent McKevitt, said: “We are very excited to create one of the largest healthy eating groups in the UK. We look forward to growing the business and taking healthy eating to even more people. Our companies have different strengths and we are looking forward to taking the best from both. Vital has a great team and superb locations, whilst Tossed is strong in hot food and technology. We will look to review our systems and cherry pick the best from both brands.” Tossed are technology-led pioneers in the healthy eating space, having launched Europe’s first cashless restaurants in 2015.

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