Domino's gains 2.3% on quarterly update

The news: Shares in pizza chain Domino's rise 2.3% after a quarterly update reported strong sales growth and forecast higher earnings.

The numbers: Domino's increased network sales by 12.7% and increased sales in existing stores by 2.7% in the year to date, led by outlets in Australia (+7.0%) and Europe (+3.8%), while turnover in Asia fell 6.8%. The chain opened 395 stores net, and closed 97.

The context: Domino's has been working to cut costs, closing underperforming stores and exiting the Danish market. The chain expects higher material earnings in the first half of 2024 compared to the current half as it restructures the business, cuts costs and tries to rebuild franchisee profitability.

What they said: "Australian consumers are choosing higher quality pizzas as they seek an affordable treat in the face of cost of living pressures, in a trend Domino’s has coined 'treatflation'," Domino's said in its AGM media release.