The sales and profit making machine of Domino’s Pizza is in good order and still exceeding expectations.
The company’s net profit jumped 56.7% to $43.3 million in the first half as it quickly expanded its brand of fast food in Australia and the rest of the world.
Sales were up 28.5% to $919.6 million with growth in Australia, New Zealand, Belgium, France, the Netherlands and Japan.
Domino’s shares were up about 8% to $56.50 in early trade.
The underlying results are from organic growth with recent acquisitions in France and Germany not yet contributing to earnings.
A focus on developing and delivering online platforms resulted in cost and operations efficiencies across the Group and strong online sales growth in all six markets.
Shareholders will be paid an interim dividend of 34.7 cents, 70% franked, up 41.1%. This brings the full year dividend to 69.3 cents.
The company also launched the first 10-minute delivery store in New Farm, Queensland, in December.
CEO Don Meij says the goal for the next three to five years is to execute delivered pizzas nationally in 10 to 12 minutes.
“Our commitment is to a philosophy of being ‘slow where it matters, fast where it counts’,” he says.
“Slow in the careful preparation of high quality pizzas, safe delivery and friendly service at the door. Fast in that we are cutting the cook time in half, hustling to and from cars and using faster ovens and improved technology.”
Domino’s has 1580 stores, with more planned this year, including more than 50 in Australia/New Zealand, 60 in Europe and 65 in Japan.
The company upgraded its guidance for underlying EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) and profit to be in the region of 35% for 2016.