Domino’s profit jumps

dominos cheltenhamStore openings, same store sales growth, and digital innovations have helped Domino’s Pizza lift its full year profit by more than 40 per cent to $64 million, beating its own guidance. 

The result is better than the 32.5 per cent increase in net profit the company had forecast and is thanks in part to 11.3 per cent same store sales growth in Australian and New Zealand and the opening of 59 new stores.

Domino’s also credited its strong performance with “industry shifting digital innovation” such as Domino’s Live Pizza Tracker, 4 Click Ordering, and Payment Tokenisation.

Group CEO and MD, Don Meij, said, “We have continued the positive sales momentum right across the group in each of our six markets and in ANZ we delivered another year of strong earnings growth driven by double digit same store sales and record store openings.

“Product innovation continued to be core to our business with the ANZ menu inspired by the street-food trend with flavours such as pulled pork, pulled beef, and the popular oven baked churros.”

In Europe, Domino’s opened 54 new stores and same store sales rose by 6.4 per cent. The company hit a number of milestones including 200 stores in Netherlands and Belgium and 250 stores in France.

In Japan, the company added 64 new stores, with franchise stores now accounting for 26 per cent of the store count. The Japanese operation “continues to trade to expectations” and same store sales grew 1.8 per cent.

For the year ahead, Domino’s expects to lift its net profit 20 per cent.

“In ANZ we have in excess of 40 exciting digital projects in the pipeline for FY16. This includes many that will make the ordering process even faster and easier for our customers with a 15 and 20 Minute Delivery Guarantee and Fast Favourites which allows customers to order in fewer clicks,” Meij said.

Meij said the new GPS tracking technology will continue to be the linchpin of the ANZ business and drive sales, take operational execution and customer service to a new level, and offer the customer unprecedented engagement in the QSR space.

“We have only just fired up the ovens on what is possible with GPS Driver Tracker. The rollout of the 15 and 20 Minute Service Guarantee, a QSR first, means customers will reap the benefits of piping hot, fresh pizzas, reduced waiting times and increased convenience.

“The algorithm behind the 15 and 20 Minute Delivery Guarantee, as well as GPS Driver Tracker, means it’s only activated when we can do this safely from an operations perspective.

“This move will see us compete in a new market, taking share from the convenient fast food drive-thru outlets.”

Across the group, Domino’s is planning to open between 180 and 200 new stores over the next 12 months.

AAP

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