Domino’s growth set to continue

Domino's boss Don Meij

Domino’s boss Don Meij

Domino’s Pizza Enterprises Limited (DMP) has announced strong first quarter results and upgraded its full year 2016 guidance to 25 per cent growth over 2015.

This is up from an initial forecast of 20 per cent profit growth in August, albeit lower than the 40 per cent growth achieved in fiscal 2015.

Australia and New Zealand same store sales rose (SSS) nearly 14 per cent in the first 18 weeks of fiscal 2016, while Europe’s same store sales grew 7.7 per cent.

Domino’s group CEO and MD, Don Meij, said that the strong same store sales in Australia, New Zealand and Europe combined with new hi-tech customer services are behind the profit upgrade.

“As a result of the above expectation first quarter results and and favourable foreign exchange translation benefits, we are upgrading ANZ SSS from 6-8 per cent to 9-11 per cent for the full year and from 4-6 per cent to 6-8 per cent SSS for the full year in Europe,” said Meij.

Meij said introducing GPS tracking of pizza deliveries for customers and stores was behind the rise in pizza sales in Australia, NZ and Europe. “GPS driver tracker has been a huge success. Customers love it,” said Meij.

The GPS tracker system will be rolled out in Japan between April and June and to stores in the Netherlands early next year. Japan is currently performing in line with management expectations, achieving 0.7 per cent SSS growth in the first 18 weeks of trading. “We expect a positive impact,” said Meij.

The company recently announced it had entered into a binding agreement to acquire the Pizza Sprint chain of 89 pizza stores in France, further consolidating its growth in this market. Meij said Europe has experienced significant momentum and this is set to continue with the rollout of the Global Online Ordering System in France in FY16.

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