Domino’s Pizza has smashed sales and profit numbers for another year.
Network sales were up 32.7% to $1.964 billion and underlying profit after tax was ahead of guidance at $92 million, a 43.6% rise and a record.
Adding in the costs of buying Sprint Pizza in France and Joey’s in German, statutory profit was up 28.7% to $82.427 million.
The result was boosted by adding another 484 stores and leveraging digital platforms. Same store growth was 10.9%, with Australia and New Zealand recording 14.8%. Europe was 8.2%.
The Domino’s share price has doubled in 12 months to $76.98.
The company declared a dividend of 38.8 cents a share, 70% franked. Added to the interim dividend of 34.7 cents, this will bring the full year dividend to 73.5 cents, an increase of 41.9%.
In Australia, initiatives included the global launch of the world’s first autonomous delivery vehicle, Domino’s Robotic Unit, and Smart Watch ordering.
These contributed to Australia and New Zealand online sales growth of 33%.
The company plans to increase the future store count in the Australian and New Zealand market to 1,200 from 900.
“We are focused on improving technology, pushing safer, more efficient delivery, whilst investing in world class ordering platforms,” says CEO Don Meij.
“A huge driver of this is our Project 3/10 and our Slow Where It Matters, Fast Where It Counts philosophy, which have enabled stores to deliver in 10-12 minutes and reduce pick-up times to between 5-6 minute.
“We expect Project 3/10 to continue to be a significant sales stimulus over the next 3-5 years, with 10-minute delivery attracting drive-thru customers from our largest competitors.”
Domino’s forecasts 2017 profit growth to be in the region of 30% and EBITDA (earnings before interest, taxes, depreciation, and amortisation) to rise by +25%.
Domino’s results in detail: