INNOVATION HELPS DRIVE DOMINO'S PROFIT TO $64M

Written on the 11 August 2015

INNOVATION HELPS DRIVE DOMINO'S PROFIT TO $64M

DIGITAL innovation and a raft of new store openings has helped Domino's Pizza Enterprises (ASX:DMP) cook up a full-year profit of $64 million.

The result represents a 40 per cent lift from the previous year, with EBITDA up 34.4 per cent to $127.8 million.

Domino's opened 59 new stores in Australia and New Zealand during FY15, while achieving same-store sales growth of 11.3 per cent, fuelled by new customers using the Pizza Mogul app.

The company also launched a Live Pizza Tracker in July to track delivery drivers using GPS, and it also rolled out 4 Click Ordering and payment tokenisation.

There are more than 40 digital initiatives to speed up ordering in the pipeline, including a 15 and 20-minute delivery guarantee.

Domino's CEO and managing director Don Meij says connecting with customers through the use of technology will maintain the company's growth.

"We have continued the positive sales momentum right across the group in each of our six markets and in ANZ we delivered another year of strong earnings growth driven by double-digit SSS and record store openings," Meij says.

"The algorithm behind the 15 and 20-minute delivery guarantee, as well as GPS Driver Tracker, means it's only activated when we can do this safely from an operations perspective.

"This move will see us compete in a new market, taking share from the convenient fast-food drive-thru outlets. These revolutionary projects will also assist us in reaching our record store growth in ANZ in FY16."

The company's operations in Europe delivered a record EBITDA growth of 92.3 per cent, after opening another 54 new stores across the continent.

Corporate stores in France are starting to lead the growth, despite a VAT increase presenting a challenging macro environment.

Domino's Pizza Japan grew 14.8 per cent on a full-year basis, adding 64 stores in new markets.

Meij says Domino's franchise model has contributed to its success, with 75 per cent of the business franchised.

"We can be agile, stay ahead of the curve, innovate and improve because our franchisees are world class," he says.

"The commitment in this space, to stay ahead of the curve and be at the forefront of digital innovation is demonstrated by our significant investment of the 40-plus new and exciting digital projects in the pipeline for the year ahead.

"As part of this focus, we continue to assess opportunities to further leverage our capabilities in new and existing markets which includes reviewing strategic acquisitions if relevant to our growth strategy."

Domino's will pay a final dividend of 27.2c a share on September 11. This brings the full-year dividend to 51.8c up 41.1 per cent compared to the previous year.

 


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