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Slice of pizza market continues to grow for Domino’s

Sarah Stowe

Pizza franchise, Domino’s, has announced its latest growth figures at its Annual General Meeting, achieving Same Store Sales growth of 10.3 percent in the first four months of the 2012 financial year.

This is an improvement on the growth experienced at the same time last year, which stood at 7.83 percent, and is a result of same store sales growth of 11.1 percent in Australia and New Zealand and 8.3 percent in Europe.

These figures are again improvements on those recorded last year, which were 9.35 percent and 4.21 percent respectively.

Domino’s chief executive officer Don Meij said that while Same Store Sales growth had been impressive for the 2012 financial year to date, the company is cautious about its ability to maintain the trend for the full year.

“We have experienced strong Same Store Sales growth during the first four months of the 2012 financial year, particularly noteworthy given the current economic environment being experienced by retail generally,” Meij said.

“However, due to solid results from promotions from October to June last year we have some very strong numbers to roll over for the remainder of this financial year.

“Given these considerations we are expecting to achieve the upper end of our 2012 full year guidance of three to five percent Same Store Sales growth, and reaffirming NPAT growth in the region of 15 percent,” he said.

Meij added that strong organic store openings for the first half of 2012 will help the franchise to achieve its goal of opening 60 to 70 new stores during 2011/12.

“Domino’s has already opened 12 new stores this year and we expect to open 35 to 40 during the first half of 2011/12.

“These openings include six in Australia, one in New Zealand, two in France and three in The Netherlands, which are all new image stores that feature seating for customers and an open view to the store’s pizza making area,” he said.

Also contributing to Domino’s growth will be its focus on product development and technology initiatives, both here and overseas.

“We have recently launched free range chicken on our pizzas in Australia and we are committed to making further improvements to reduce the saturated fat and sodium content in our ingredients without compromising on taste,” said Meij.

Mobile ordering has also been launched in The Netherlands, and France has commenced mobile advertising, he added.