It expects to meet market expectations for 2020 profit.
Domino’s Pizza Group said it expects annual underlying pretax profit to range between 93 million pounds and 98 million pounds, compared with 98.8 million pounds for 2019, the company revealed in a trading update.
The UK master franchisee of the global pizza firm said a lower value-added tax rate and higher online orders assisted in its 19% jump in third-quarter sales.
Specifically, a cut in the UK’s value-added tax rate to 5% from 20% in July helped Domino’s in controlling costs, which anchored the company’s first-half profit.
Online sales now account for around 95% of delivery sales in Britain, Domino’s said. The company’s UK and Ireland system sales increased to 342.1 million pounds in the quarter ended 27 September, from 288.2 million pounds a year earlier.
“At the heart of our future plans is realignment with our franchisee partners and we are having detailed discussions to agree a sustainable way forward,” Domino’s Pizza Group chief Dominic Paul said, in reference to a profit-sharing row with its franchisees.
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