Domino’s posts a record profit from selling $2.6 billion of pizza

The Domino’s drone in action in New Zealand. Photo: Supplied.
  • Domino’s Pizza full year sales almost $2.6 billion.
  • Statutory profit up 18.1% to $121.5 million.
  • Online sales were up by 19.4% to 63.9%.

Domino’s Pizza sold $2.59 billion in pizza last financial year to record a statutory profit of $121.5 million, up 18.1%.

During the year, a record of two million pizzas and sides were sold in Australia in one week.

The result was below analyst expectations of $136.8 million. Adjusted for a share buyback, net profit after tax was $136.2 million, up 15%, a record. The dividend payout was 107.8 cents a share, up 15.5%.

In early trade, Domino’s share were down 12.5% to $45.84.

The company added almost six stores a week in the 2018 financial year, building 145 new stores and acquiring 163 from other brands.

Total sales grew 11.7% to $2.59 billion. Online sales were up by 19.4% to 63.9% of sales.

When compared to the same stores in the previous year, sales in all markets were positive: Australia (+4.5%), Europe (+5.7%) and Japan (+0.9%).

CEO Don Meij says the company is pleased to be delivering on its multi-market strategy.

“Less than four years ago we surpassed $1 billion in sales, and this year Group Network Sales reached $2.59 billion – this continues to be a fast growth business,” says Meij.

“We delivered positive growth in all markets but after consecutive years of significant and compounding growth, our bar for success is even higher.”

The Australian sales performance was affected by uncertainty before to the introduction of modern award wages, now successfully implemented.

“One of the significant achievements this year was the transition of our Australian employees to the Modern Fast Food Industry Award,” Meij says.

“Even with some uncertainty prior to moving to the Award, that affected store performance and operations, our franchisees profitability is in line with the previous year.

“We are proud of our franchisees having implemented this significant change, which means our team members are paid rates among the highest in our industry, including penalty rates and mileage allowances, which they deserve.

“Globally, we believe ongoing growth over the longer term is achievable and expect to grow our business, and our share of the pizza and wider fast food markets, with compounding growth in the range of 3%-6% — higher than our competitors.

“We believe this is achievable given the growth we’ve achieved in the Europe market already — 230% in the past three years alone.”

Domino’s store openings and sales were positive in the first trading weeks of 2019.

In the first six weeks, 12 new stores opened.

During the first 5 weeks of trade, group same store sales were +4.4%.

The 2018 results:

Source: Domino

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