Domino’s has warned of an impact on earnings after it incurred “considerable” additional costs during the lockdown period.
Newly-introduced measures, such as halting in-store collections and implementing social distancing schemes and contact-free delivery boxes, have “more than offset” the benefits from increased delivery sales, according to the group.
It therefore expects that EBITDA for the first half of the year will be “slightly lower” than the year prior.
Nonetheless, Domino’s reported that like-for-like sales in the first half of the year remained “strong”, up 3.7% against the year prior. Pre-lockdown trading was also “robust”, driven by an increased order count.
At the start of the lockdown period, it saw its sales performance from delivery grow “rapidly”, which offset the lack of sales from collection, though total order count has seen an overall decline during the lockdown period.
The pizza chain said that a change in consumer purchasing behaviour has also “impacted” its margins, with customers ordering a higher proportion of sides and desserts.
CEO Dominic Paul said: “I joined the Group at a time of unprecedented trading conditions and have spent my first few weeks as CEO becoming fully immersed in the business.
“I have been hugely impressed by the hard work, dedication and agility of our colleagues and our franchisee partners to keep Domino’s delivering, and I would like to say a big thank you to the entire team.”
He added: “Throughout this crisis we have focused on looking after our people and working together with our franchisee partners to safely serve our customers and help our communities. I am proud of the performance of our system during this period, and that the vast majority of our stores have remained open.
“I am looking forward to giving a more detailed update on our performance and sharing my first impressions of the business at our first half results presentation in August.”