April 23 (Reuters) - UK's Domino's Pizza Group said on Thursday it recorded a first-quarter like-for-like sales growth of 4.5% as underlying demand improved and its recent product launches gained
UK's Domino's Pizza reports 4.5% quarterly like-for-like sales growth
Domino's Pizza Group Q1 Performance and Market Outlook
April 23 (Reuters) - UK's Domino's Pizza Group recorded on Thursday a first-quarter like-for-like sales growth of 4.5% as underlying demand improved and newer products gained traction, helping offset a challenging consumer backdrop.
Share Price Reaction
Shares of the company were up 3.6% at 190 pence at 0702 GMT.
Strategic Initiatives and Product Innovation
Leadership Changes and Product Focus
Domino's UK, which appointed a new CEO in late March, has been betting on fried chicken lately as the pizza industry has struggled with slowing demand, even with eye-catching offers for customers.
Performance of New Product Range
The initial trading performance of the CHICK 'N' DIP range has met expectations, Domino's said.
Financial Management and Risk Mitigation
Cost Hedging Strategy
The chain, which operates under the umbrella of U.S.-based Domino's Pizza, said its costs are hedged for the current financial year with some covered into 2027.
Supply Chain Stability
The firm does not expect any supply-related issues due to the Iran war that has upended global supply chains and raised energy costs.
Analyst Insights and Future Prospects
Analyst Commentary
Analysts at RBC Capital Markets said that the company has had a "positive start" to the year, with the upcoming FIFA World Cup expected to provide a boost in the second and third quarters.
Reporting Credits
(Reporting by Rishab Shaju in Bengaluru; Editing by Rashmi Aich and Mrigank Dhaniwala)
