Dominos Pizza Enterprises reports strong full year profit from take away franchises

In good news for Dominos Pizza Enterprises take away franchises, the company today announced a $17.8 million full year net profit after tax, up 16% on the previous year.

Generated from total network sales of $694.3 million, this takes Dominos Pizza’s annual growth rate over the last three financial years to a solid 25.1%.

CEO and managing director of the network of Dominos pizza franchises and company stores Don Meij says the strong end of year results were reflected in the company’s strong network sales growth.

“Our solid performance for the 2010 full year is the result of strong network sales growth up 5.6% in Australia and New Zealand while Europe experienced solid growth up 14.3% on the corresponding period last year,” Mr Meij says.

As a result of its performance, Dominos Pizza Enterprises will pay shareholders in the company a final fully-franked dividend of 11.8 cents per share, which includes a special one-off dividend of 3.4 cents per share, bringing the full year dividend to 17.8 cents, to be paid on September 15th, 2010.

In a sign of increasing growth, same store sales at Dominos take away franchises was also up this year, posting a 3.23% increase.

Mr Meij says this was aided by strong promotions in both the Australian and New Zealand markets.

“[This is] a good result given we were rolling over a strong year in 2009 following the new menu launch,” Mr Meij adds.

A continued focus on online sales has also contributed to these results, Mr Meij says. Online ordering and ancillary technology such as the successful Dominos iPhone app advancing and delivering good growth for both company stores and take away franchises.

“Looking forward to the 2010/11 financial year, Dominos is confident of continuing the current momentum we are experiencing and we expect to deliver a net profit after tax between 10 -15% above 2010, and to add 50 to 60 new stores to the network,” Mr Meij says.