Wed 8th Jan 2014 - Breaking News - Domino's reports 10.9% like-for-likes in Q4 Domino’s reports 10.9% like-for-likes: Domino’s UK has reported like-for-like sales growth of 10.9% at its 670 UK stores (2012: 4.5% in 613 sites) in the 13 weeks to 29 December. System sales for the period were up 15.6% to £170.4m (2012: £147.4m). Like-for-like sales were “partly driven by increased digital marketing activity and more favourable timing of the Christmas break compared to last year”. System sales for the 52 weeks ended 29 December 2013 increased by 12.2% to £608.8m (2012: £542.8m). Like-for-like sales for the year, in UK stores, grew by 7.0% (2012: 5.2%). Online sales continue to grow and accounted for 65.5% of UK delivered sales (2012: 60.8%) in the period. Total online sales for the period rose by 15.7% to £94.4m (2012: £81.6m) and online sales for the year were £325.9m (2012: £256.0m). Mobile sales were up by 91% in the period (2012: 187%) and accounted for 30.9% of total online sales in the year (2012: 19.7%). During the period, Domino’s opened 27 new stores in the UK (2012: 25) with 50 new stores (42 traditional delivery stores, six kiosk stores in Extra motorway service stations, one kiosk in Newcastle University and one mobile unit) opened this year (2012: 57). At the period end, Domino’s had a total of 777 stores in the UK (2012: 727). During the year no stores closed (2012: 2). System sales in the Republic of Ireland were up 7.6% to €13.5m in the period (2012: €12.5m) and were up 6.0% for the year to €49.6m (2012: €46.8m). Like-for-like sales in the period were up by 7.6% (2012: -4.2%) with “late-night” being a key driver of this growth. Like-for-like sales for the year grew by 6.0% (2012: -0.3%). During the year no stores opened and none closed (2012: 0 openings and 0 closures) with the number of stores therefore remaining at 48. The German market generated system sales in the period of €2.9m (2012: €1.4m) and like-for-like sales growth of 4.6% (2012: 21.7%). For the year, system sales were up 184.2% to €10.4m (2012: €3.6m) and like-for-like sales were up 14.7% (2012: 19.3%). The franchisee stores continue to make good sales progress and at higher sales levels than the corporate stores. A new average weekly unit sales (AWUS) record was achieved by one franchisee with an AWUS of €46k which “demonstrates the potential in this market when the marketing, product and service are all superbly executed”. Seven stores opened during the year - all in the first half. No new stores were opened in Germany during the period as a result of the decision taken to transition the majority of the corporate stores across to franchisee management. The company stated: “On this front, we are pleased to announce that we have made significant progress and, at the year end, agreement has been reached with franchisees to transfer 13 of the 15 corporate stores to franchisees and we have closed one. Five of these stores transferred on 29 December, two stores closed with one of these closures to be relocated by a franchisee, one store transferred on 1 January 2014 and we have preliminary agreement for the remaining six to transfer to a franchisee during H1 2014. Our flagship store in Dusseldorf will be retained as a corporate store and will be operated as a training facility for the wider franchise system. As at 29 December 2013 Germany had 23 stores.” Chief executive Lance Batchelor said: “I am pleased to report an outstanding last quarter of like-for-like sales growth in our core UK market and robust like-for-like sales growth in the Republic of Ireland stores, where positive like-for-like sales were recorded in every quarter this year after four years of decline. I am also pleased to report that we have reached agreement to transfer corporate stores in Germany into franchisee hands and are encouraged to see that we have several German based franchisees that will join our system in this year. The company will deliver full year 2013 profits ahead of market expectations for the UK and Ireland, but losses in Germany will be higher than expected primarily due to the later than expected transition of the corporate stores into franchisee hands.” Non-executive chairman Stephen Hemsley said: “Following Lance Batchelor’s recent resignation, an executive search firm has been appointed and the CEO recruitment process is now underway. We are confident of attracting a CEO of the highest calibre”. Numis Securities leisure analyst Douglas Jack, issuing a buy note and a Price Target of 710p, said: “UK like-for-like sales rose 10.9% in Q4 and by 7.0% over the full year. As a result, we are upgrading our 2013E UK EBIT forecast by £2.6m and group PBT by £0.6m. Underlying growth in the UK remains significant and, with agreements in place for all the planned corporate-to-franchise transfers, Germany losses should now start to fall, boosting group PBT growth in 2014E by a further 8%, by our estimates.”