Domino's Pizza

Ubiquitous fast food retailer Domino's Pizza (DOM) continues to win over the sceptics, with further evidence that the nation's love for its products remains strong.

In the last quarter of 2011, systems sales edged ahead 9.5% to £145m, helping the overall result for the year jump 9.4% to £530.6m. As a result, Domino's is on track to deliver 'in line' results when it reports full year figures on 15 February, it will also be the first time recently installed CEO Lance Batchelor presents to the City.

Like-for-like sales in its mature stores grew 3.6%, which compares to tough comparative of 10.3% in 553 stores in 2010. Within this the UK (93% of sales) increased 4% and in Ireland, where trading has been very difficult, Domino's has managed to arrest the slide to just -1% from -4.7% the year before.

Given the demographic of its target audience, coupled with advances in mobile penetration, Domino's has notched up strong growth in online sales through mobile devices. Total ecommerce sales soared 43% to £183.1m, with online revenue now accounting for 44.3% of total orders at Domino's.

Though sponsorship of the ill fated Red or Black gameshow has probably done little to help, Domino's continues to see strong demand for its Stuffed Crust, Meaty Meatilicious and Gourmet Pizza range - combined they make up 20% of sales. Last year the fully listed firm opened a record 62 stores (2010: 57), of these four were in a new territory - Germany.

Domino's is a volume driven business, so key to its success is new store openings and pushing higher sales through its outlets. We last rated the shares as a hold in September at 486.8p, the price has since drifted by 10%. This is undoubtedly a quality business, but the rating reflects it. For now, await the results. Hold.