Domino's rallies as Citigroup highlights LFL momentum, German potential

The bank said it sees continuing strong UK growth in the medium term through both good like-for-like sales and store roll-out.

In addition, it said mobile ordering is a key driver of LFL sales momentum, a trend it sees continuing.

Citi said digital ordering was up 35% to total 75% of delivered sales from online, with 50% from the app.

For the German business, although the difficulties to date have been well documented, it reckons Domino's will prove a success in the long run, especially in the context of the 560 stores in Belgium/France/Netherlands, run by the Australian Domino's business.

“We recognise that profitability in Germany has been pushed out, but we see similarities to the UK business, which also saw limited profitability in its early years. We await further news on the repositioning in Germany.”

At 0937 BST, Domino’s shares were up 4.5% at 1,048p.