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Domino’s pizzas on the rise

Sarah Stowe

Domino’s Pizza reported strong sales for the franchise network for the first half of financial year 2008-9, recording a growth of 14.5 percent over the same period the previous year.

CEO Don Meij said the company’s net profit after tax (NPAT) had increased 2.8 percent to $6.3 million. “Domino’s Pizza is on track to meet market guidance of an increase of 10 percent to 15 percent in NPAT on full year 2008,” he said. “Despite the economic downturn, customers are still appearing to be supportive of the fast food category.”

Same store sales were only 4.2 percent up, considerably less than the 7.6 percent for the previous year, a reflection of tougher trading times. Revenue too was down 2.1 percent to $113.4m. However Don Meij said same store sales had increased 5.2 percent in January 2009.

Online business and additions to the menu introduced last week, including pasta, drinks and dessert, are designed to offer customers the choice and value they demand, Meij said. Online ordering in Australia accounts for 19 percent of sales and is a significant part of the group’s marketing approach.

Domino’s is Australian’s only publicly-listed pizza company and is the master franchisor for the brand in Australia, New Zealand, France, Belgium and The Netherlands.