Domino's ups UK store target, reiterates 2016 profit guidance

Domino’s Pizza increased its long-term target for expanding its UK store presence on Thursday as it reiterated its guidance for 2016 pre-tax profit.

The company said that given the continued strong new store performance and positive outlook for its market and the brand, it is upping its target for the UK to 1,600 stores from 1,200 previously.

Domino’s expects to operate around 950 by the end of this year and outside the UK, it has identified opportunities for a total of 400 stores, up from around 100 at the end of 2016, excluding the German joint venture.

Chief executive David Wild said: “This is an exciting time for DPG. Our continued strong e-commerce performance and our collaboration with our dedicated franchisees, enable us to increase our UK presence significantly. Internationally, our progress in Switzerland and new collaborations in the Nordic region are exciting opportunities for the business."

The group said it continues to trade well and pre-tax profit guidance for 2016 remains unchanged.

Re-phasing of the new Supply Chain Centre projects means capex will be around £20m compared to the £33m indicated at the half year and Domino’s said this this will not affect its ability to meet demand over the next 18 months.

The company added that while it remains committed to the return of surplus cash to shareholders through buyback, it has paused the process recently due to an issue it is resolving.