Domino’s Pizza Group has reported a slide in like-for-like sales in Q1, down 0.5% in 2024 year-on-year.
On a reported basis, LFL systems sales growth, excluding splits and VAT, were down 2.1%.
Total orders were down 0.8% in the first quarter compared to 2023.
The company said this was driven by a slow January, in part because it tactically held back on marketing spend to support more strategic launches later in 2024.
Despite this, the group said it returned to positive like-for-like growth in February and March.
Delivery orders were down 5.0% in a “softer delivery market” with a focus on returning these to growth in FY24.
Collection orders - the most efficient labour channel - continued to grow in Q1 and were up 4.7%.
The brand cautioned that Q2 would be another tough comparative period, with trading in April slower given the very strong comparative in the prior year.
Domino’s opened 14 new stores in Q1 with 12 different franchisees and expects to open in excess of 70 new stores in FY24.
The brand said its pipeline remains strong, it and currently has 38 stores either under construction or with planning permission.
The group acquired full control of Shorecal on 10 April, which will unlock a significant opportunity in Ireland to accelerate growth.
It is in advanced stage of the process to sell its London corporate store estate to a select number of existing and new franchisees.
The business saw a 37% increase in app customers and orders placed on the Domino’s app +11.3ppts vs. Q1 23.
A focus on customer service has maintained average delivery times at 25 minutes and there has been a progress in reducing the number of orders delivered ‘late’.
In Q1 Domino’s launched the Cadbury Crème Egg Cookie, described as its biggest dessert launch for nearly 10 years.
A new £4 lunch offer launched on 8 April, providing an opportunity to target different parts of the day, with early signs “encouraging”.
In January, Domino’s started a trial with Uber Eats which is now live in 1,170 stores across the UK & Ireland.
This allows customers to order Domino’s Pizza via the Uber Eats platform, but the pizzas are delivered by Domino’s delivery drivers, the same approach as with Just Eat.
Andrew Rennie, chief executive officer, said: “We remain resolutely focused on executing our strategy and have made strong progress in Q1, both across the core UK&I business and with our strategic growth ambitions. Following a slow January in part as we tactically held back marketing spend, I am pleased that we saw positive like-for-like sales and orders across February and March in an uncertain market. Like Q1, Q2 is another tough comparative period but we remain confident of delivering order count and like-for-like sales growth this year and are pleased to confirm our full year profit guidance.”
“I’m excited by the momentum we have in the business. We have a fantastic pipeline of initiatives across our UK & Ireland business driven by real energy from our colleagues and our franchisees. We launched our new £4 lunch offer in April, giving our customers an incredible value lunch option, and we’re encouraged by the early reaction. Our trial with Uber Eats has meaningfully accelerated, our loyalty trial is progressing well, we are at an advanced stage to sell the London corporate stores to some outstanding franchisees, which will allow us to reallocate capital within the business, and we have some exciting events such as the Men’s Euro football tournament coming up.”
