Domino’s has upgraded its full year profit forecast and growth outlook after strong sales, which the company’s CEO attributed to the fast food giant’s new menu.
The pizza delivery retailer expects its EBITDA to grow 30 per cent in the current financial year, an increase from previous guidance of 25 per cent.
Don Meij, company CEO and managing director, said the upgraded results, including lifts in medium- and long-term growth outlooks, showed the pizza company’s strategy was delivering results in all markets.
Meij told shareholders during the group’s annual general meeting the company’s sales performance was higher than expected in the first months of the 2017 financial year as a direct result of the pizza retailer’s new menu that now includes more premium meat and more side dishes and desserts.
“We are very pleased with the sales performance, even higher than expected, as a direct result of our Taste the Colour menu launch in Australia and New Zealand,” Meij said.
“Our new menu, combined with the ongoing technology improvements we are rolling out to make it easier and more rewarding to order from Domino’s, demonstrate why we have grown our share to 38 per cent of the Quick Service Restaurant Pizza sector,” he said.
After a record improvement in Australia and New Zealand same store sales in FY16, Domino’s has reported same store sales increases in the first 16 weeks of 17.66 per cent compared to the previous corresponding period.
“In October, our Australian stores delivered the largest like-for-like growth for the country in the company’s history,” Meij stated.
According to Meij, for this financial year, they are seeing very strong digital growth, with digital sales growth outpacing offline growth, with year-on-year growth in digital sales of 36.9 per cent in Australia/New Zealand, 38.1 per cent in Europe and 24 per cent in Japan.
Meij said they are adding thickshakes and premium ice cream desserts, including sundaes to their Australian and New Zealand stores, with a full roll out in Australia by July 1, 2017.
“Our test markets showed customers enjoyed these new products as both desserts and additional snacking options; we intend to capture 10 per cent of this market across both countries, which is estimated at $700 million in Australia alone,” he said.
“This follows the September launch of our Taste the Colour menu, which is performing even better than we expected,” Meij said. “Our customers are hungry for the 21 new ingredients, pizzas, sides and desserts we are bringing to the table.”
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