Domino’s Pizza UK & Ireland, the home-delivery pizza franchise, said yesterday that it was cashing in as consumers cut back on eating out.

Despite growing fears over the economy, the chain reported full-year profits up 33 per cent and said that like-for-like sales in the first six weeks of 2008 were 11 per cent above the same period last year.

Chris Moore, the chief executive, said: “The results are proof that our price point is resilient in these economic times and that we are benefiting from the downturn in the restaurant sector. Instead of eating out three or four times a week, we are seeing real signs that [people] have cut that to once or twice. They are filling up that gap with pizza instead.”

The comments came as Domino’s announced plans to move up to the main market after spending nine years on the junior Alternative Investment Market (AIM). “We want to attract funds we don’t currently attract,” Mr Moore said.

Domino’s shares have climbed 14-fold since the company’s flotation in November 1999 and the group now has 501 sites across the UK and Ireland. It wants 1,000 by 2017, with 50 more to open this year. The group is also starting to roll out a new, refreshed image across its sites, with up to 100 refits proposed for this year. All refits will be funded by the franchisees and the entire estate will be upgraded over the next few years.

Domino’s results showed that profits rose £4.6 million to £18.7 million in the year to December 30. Like-for-like sales rose 14.7 per cent last year, despite a price rise across the Domino’s menu last autumn. Shareholders will receive a full-year dividend of 4.40p per share, 43 per cent up on a year ago.

Mr Moore said the threat posed by price inflation seemed to be receding, with cheese prices beginning to ease. The price increase of a new flour contract was less than the 100 per cent rise that Domino’s had expected. “Fears over inflation are slightly overdone as far as we are concerned,” he said.

Analysts have predicted a slowdown in like-for-like sales growth this year to between 4 and 5 per cent, although the company is hopeful that the recent launch of a steak pizza with onion sauce and sponsorship of Britain’s Got Talent on ITV and America’s Got Talent on ITV2 may provide added momentum. Advertising industry executives believe that the sponsorship will cost Domino’s between £3 million and £4 million.

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