Domino’s to gobble more market share

Written on the 15 September 2009

DOMINO’S CEO Don Meij expects to open more than 40 new stores this year, after announcing an after tax profit growth of 29.7 per cent.

Meij attributes the $15.4 million (NPAT) to new menu options and increased demand for affordable pizza, with a 22.5 per cent rise in sales.

“We’re going to try and open 40 to 50 new stores in 09/10 and over the next 10 years we’re expecting to grow from 776 to 1600 stores – so the stores and the employee numbers will double, but profits will quadruple as you get such large economies of scale from having so many stores,” he says.

“We’ve still underpenetrated in Europe, although we are the market leader in the France and the Netherlands – in Australia and New Zealand there needs to be 100 more stores, with Sydney and Melbourne underpenetrated. We’re really happy with the result – it has exceeded our expectations in that we had adjusted our profit forecast. It’s also great that we’ve got such low debt, it’s almost down to zero so we can give a good dividend.”

Meij points out that the new menu helped deliver the best SSS (same store sales) in six years with 7.2 per cent achieved in the second half of 2009.

“The European market also experienced strong SSS with growth of more than 4.3 per cent for the full year, despite rolling over 2.5 years of double digit growth,” he says.

“In Australia, our online ordering continued to impress with more than 22.5 per cent of sales now coming from this part of the business. We are now the No.1 food and beverage retailer online in Australia which we are very excited about.

“Europe also had some impressive milestones with the 150th store opening in France and more than 33 per cent of stores converting to online ordering.”


Latest News

THE STAR'S STUNNING ANSWER TO CROWN'S BARANGAROO

THE Star Entertainment Group (ASX:SGR), not to be outdone by James Packer's Barangaroo development across the ...

BRISBANE COAL TERMINAL REOPENS AFTER SHIPLOADER REPAIR

COAL loading has recommenced at New Hope's (ASX: NHC) Brisbane terminal today after repairs to its ship loader, w...

SUPERYACHTS OFFER UNTAPPED POTENTIAL AT COMMONWEALTH GAMES

SUPERYACHT Australia has devised a strategy to attract more superyachts to Queensland and capitalise on revenue op...

GDP FIGURES A 'WAKEUP CALL' FOR PARLIAMENT

THE GDP figures are an end-of-year wakeup call for Parliament about what lies ahead for the country, according to ...

Related News

HOW MCDONALD'S AUSTRALIA REDISCOVERED ITS INNOVATIVE SPIRIT

MCDONALD'S is such a ubiquitous part of the Australian landscape today that it is easy to forget how it change...

JB HI-FI IS THE GOOD GUY IN $870 MILLION ACQUISITION

ELECTRONICS giant JB Hi-Fi has formally completed its $870 million acquisition of home appliance chain The Good Gu...

ACCC ACTS AGAINST MERITON'S RIGGED REVIEWS

MERITON Property Services is under fire from Australia's main consumer watchdog, after it allegedly engaged in mi...

ACCC FIRES WARNING SHOT TO IVF PROVIDERS

IVF clinics have been put on notice by consumer watchdog, the Australian Competition and Consumer Commission (ACCC...

Contact us

Email News Update Sign Up Contact Details

Subscribe to our mailing list

* indicates required
Email Format

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter