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Domino’s drives into half year, despite economic climate

Sarah Stowe

Domino’s Pizza Enterprises Limited has reported a jump in profit results, mainly from organic growth. The brand’s digital focus, electric push bike concept, and expansion plans are said to be the main drivers of the pizza giant’s growth.

In the report, Domino's said the brand’s Net Profit After Tax was $45.6m, which is an increase of 56.7 percent on the prior corresponding period despite the current economic climate. This result is said to be home-grown, and does not include the fast food chain’s recent expansion to France and Germany.

Domino’s Limited says “that the underlying results are from organic growth, with recent acquisition activity in France and Germany not yet contributing to earnings.”

Investing in the digital landscape, and thereby tapping into this trend in fast food delivery, has also been a major contributor to pushing growth.

“The launch of disruptive digital initiatives such as the market-first SMS ordering also contributed to strong network sales.”

“Other highlights in this market included the momentum of the electric push bike rollout and the next generation Entice store branding, with over 300 bikes operating in stores and 89 percentof stores refurbished.”

Domino’s CEO and managing director Don Meij revealed the goal of delivering pizzas nationally in 10-12 minutes in the next 3three to five years.

“Our commitment is to a philosophy of being “slow where it matters, fast where it counts”. Slow in the careful preparation of high quality pizzas, safe delivery and friendly service at the door. Fast in that we are cutting the cook time in half, hustling to and from cars and using faster ovens and improved technology,” said Meij. 

“The significant investment in our digital pipeline, as well as the opening of more than 50 new stores for FY16 will continue to improve productivity and drive sales in the second half and beyond,” he said.       

Domino’s Pizza Enterprises is the largest franchisee for the Domino's Pizza brand internationally. It now extends across seven countries, with more than 1900 stores operating.