Domino's Pizza increases stores target

Domino's Pizza Group confirms that, given the continued strong new store performance and positive outlook both for its market and the Domino's brand, it is increasing its long term target for the UK to 1,600 stores.

It expects to operate around 950 by the end of 2016.

This reflects the successful strategy of splitting territories to improve efficiency and service to customers by shortening drive times, which leads to higher sales for both DPG and franchisees. Outside the UK, the company has identified opportunities for a total of 400 stores, up from around 100 at the end of 2016. This excludes the German JV.

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 says it continues to trade well and PBT guidance for 2016 remains unchanged.

"Re-phasing of the new Supply Chain Centre projects mean that Capex will be around £20m compared to the £33m indicated at the half year. This will not affect our ability to meet demand over the next 18 months. We remain committed to the return of surplus cash to shareholders through buy-back, but have paused the process in recent weeks because of an issue we are resolving."

At 9:59am: (LON:DOM) Dominos Pizza Group PLC share price was +16.35p at 346.25p