Domino’s shares spiked over 4 percent on Thursday, ahead of a Capital Markets event and a trading update showing plans to expand at a faster rate than previously planned.
In a statement, the group highlighted their “continued strong new store performance” and increased its long term target for the UK to 1,600 stores. It expects to operate around 950 by the end of 2016.
Domino’s said it had identified opportunities for a total of 400 stores internationally, up from around 100 at the end of 2016.
Commenting on the announcement, David Wild, chief executive of Domino’s, 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 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 £20 million compared to the £33 million 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.”
Reindeer delivery service?
The announcement comes just after the group released a press release in Japanese suggesting it may be trialling a delivery service using reindeer on the Japanese island of Hokkaido this Christmas.
The press release, released late last week, said Dominos would be working with reindeer breeders at the Hokkaido Delivery Integrated Research Center in order to ensure pizzas could still be delivered, despite the extremely cold weather faced by the island over winter.
Domino’s (LON:DOM) shares are currently up 3.86 percent at 342.63 (1110GMT).