Domino's Pizza delivers mighty meaty set of profit results as cheddar price drop makes cheese

Domino's Pizza has reported a robust set of results, with pre-tax profit jumping 17.8% to £73.2m ($103m).

The pizza delivery company had a 15.8% jump in like-for-like sales, aided by increased uptake of its app, which now accounts for almost half its sales. Costs were also cut for Domino's, profiting from the falling price of cheese.

The Chicago Mercantile Exchange, the biggest cheese benchmark based on cheddar prices per pound, has dropped by almost a third in the last two years, to $1.47 on average in January and February 2016.

"During 2015, we and our franchisees enjoyed the benefits of a benign food price landscape with a record low cheese price, favourable wheat price and a fall in fuel costs," the company said in a press release.

Chief executive David Wild added that Domino's had seen a terrific year, adding that its performance in the UK was "outstanding". Sales in the country jumped 16.1%, which Wild said reflected the chain's "investment in our e-commerce platform".

"This underpins both our like-for-like results and the success of our new store programme," he said. "Digital continues to be at the heart of our business, driving more customers and higher frequency of orders."

Despite the fact that many European countries are becoming more health conscious, food delivery companies have seen a surge over the last year. Just Eat reported a 58% surge in sales on Tuesday (1 March).

Domino's performed well in Europe too, with a new joint venture in Germany leading to the acquisition of the largest pizza delivery chain in the German market.