Domino's shares soar but can Australians keep eating more pizza?

A store in France. Philippe Huguen/AFP/Getty Images

Domino’s Pizza keeps expanding offshore but it’s in Australia where the numbers are spinning higher.

Same store sales increased in the first 16 weeks of the financial year by 17.66% compared to the same period the year before, according a market update.

“In October, our Australian stores delivered the largest like-for-like growth for the country in the company’s history,” says CEO Don Meij.

A short time ago, its shares were up 6.5% to $72.67.

Domino’s has upgraded the company’s full year growth outlook as sales and margins keep improving.

The company upgraded EBITDA (earnings before interest, taxes, depreciation, and amortisation) growth to be about 30%, up from 25% and reconfirmed underlying net profit growth of more than 30%.

And Meij sees his home market, Australia where Domino’s has about a third of the market, as a big opportunity.

The business will sell more than 100 million pizzas this year through a network of 2,022 stores across seven markets: Australia, New Zealand, Belgium, France, the Netherlands, Japan and Germany.

Meij thinks Australians can do better. But how many more pizzas can they eat?

“A lot more,” Meij told Business Insider.

“Australians (per head) eat one-tenth the amount of the pizzas that Americans eat. One-sixth the amount of pizzas that the French eat and a third of what the Germans eat.

Australia/NZ market Share. Source: Domino’s

“We’ve got a lots of growth ahead of us.”

The much-talked about world first pizza-by-drone delivery service is coming. Domino’s has partnered with Flirtey, an Australian company and a leading drone developer.

“In New Zealand we are at the last stages of approval, doing testing,” he told Business Insider.

“We will be delivering by drone in New Zealand by Christmas.”

And online sales are growing, with year-on-year growth in digital sales of 36.9% in Australia/New Zealand, 38.1% in Europe and 24% in Japan.

Part of the sales growth is about cutting delivery times.

Domino’s has Project 3-10, designed to have orders ready for pick-up in three minutes and delivered in 10 minutes.

“I am pleased we have made progress towards this goal; our stores are seeing pick-up times of less than six minutes, down from 12 to 15 minutes,” says Meij.

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