Recession-hit consumers help Domino’s deliver £23.4m profit

This morning Domino's Pizza posted full-year pre-tax profit up 25%, boosted by a 73% increase in online sales. In fact, the pizza delivery company said its online sales generated £55.9m up from £32.2m last year.

While the economic downturn has forced many companies to cut costs and in some cases issue redundancies, Domino's has said it expects its UK business to double in size in the next 10 years and plans to open 50 more stores this year.

With a strong start to 2009, Nick Raynor, investment adviser at The Share Centre, explains why he feels Domino's also has plenty to offer investors in these volatile times: "Domino's has proved itself to be a real recession proof investment. While we were expecting good results this morning, it is encouraging to see such exceptional figures in the current climate, said Raynor.

Raynor adds: "Domino's remains one of our preferred shares for 2009. Its strong financial performance so far, its expansion plans and the accessibility of its products, are all good signs that the company is performing well and consumers have a genuine appetite for its products. In fact, Domino's said that 2.7m households they delivered to during the year were to new customers.

"Investors should be cheered by Domino's performance - it's nice to see a company increasing profits and with the confidence to expand during these turbulent times. Investors seeking income from their shares at present should also be pleased that Domino's has increased its dividend payments by 34% to 5.9 pence."