DOUGH RISES FOR DOMINO'S PIZZA
Written on the 22 August 2012
DOMINO’S Pizza Enterprises Limited (DMP) has delivered full year profit of $26.9 million, up 25.7 per cent on the FY2011.
The strong growth is significant in a challenging climate where other fast food chains have struggled.
The increased profit came as the Brisbane-based DMP added 62 stores to its franchise network including 24 in Australia and New Zealand and 38 across Europe.
Domino’s CEO and managing director Don Meij (pictured) attributes the profit increase to an ongoing upgrade of the chain’s menu and an increased use of social media.
“New products include our improved Classic Crust in Australia and New Zealand, while in Europe we introduced new flavours,” says Meij.
Expansion of digital platforms and social media helped attract new customers and increased interaction and loyalty, Meij says.
DMP forecasts that 60 per cent of the company’s Australian sales will be done online or by social media and smart devices by June next year.
“During the year we launched our online catering ordering system in Australia and New Zealand to facilitate easier ordering for large groups,” says Meij.
“We were the first quick service restaurant to launch Facebook ordering, offering our 900,000 plus Australia and New Zealand Facebook fans the opportunity to order without leaving the social media environment.”
Meij says he is confident DMP will enjoy continued momentum and predicts a profit increase of around 15 per cent for FY2013.
He says store development in Europe is the strongest it’s been since entering the market in 2005.
“We expect to have a record number of organic new store openings, particularly in Europe, and hope to open our 1000th group store by December 2013,” he says.
Shareholders can expect a full year dividend of 27.1 cents per share, an increase of 23.7 per cent on FY2011.