Profit before tax at Domino’s Pizza could increase by 18%, despite a slight drop off in like-for-like sales, to approximately £16m, according to a City analyst. Douglas Jack at Numis, said that the group, which releases its half-year results on Monday, had a risk that was “firmly on the upside” in a recent note on the takeaway operator. He said: “In addition to ongoing increases in the advertising fund, product improvements and faster delivery times, Q2E LFL sales should have benefited from: the successful Two For Tuesday promotion; the football World Cup; weak LFL comparatives; and extended trading (into lunch and the late-night).” Jack added the group would benefit in the year ahead by the introduction of the Two for Tuesday offer in Ireland and a £7m increase in local store marketing and national advertising to £45m. With a buy recommendation, and a target price of 500p, he added: “Our consensus-in-line full year forecasts assume that LFL sales growth slows to 4% in 2010E and 3% both in 2011E and 2012E. “We estimate that if historical LFL sales and margin trends continue, last year’s 26% self-financed earnings growth rate could repeat in 2010E and 2011E – implying scope for significant upgrades.”