Domino’s withdraws guidance for FY2024 outlook

The brand’s growth in ANZ was offset by slower growth in its other markets.

With improvements still required in H2 to grow order volumes, Domino’s advises any previous guidance for FY2024 performance, de facto or otherwise, is no longer in effect according to the brand’s latest trading update.

According to Group CEO & Managing Director Don Meij, management has a clear plan for growing sales and reducing costs, although progress in growing sales in some markets was slower than anticipated.

Domino’s saw same-store sales increase by 8.2% in Australia and New Zealand, however, this was offset by a drop of 8.9% in same-store sales in its Asia market. 

In Asia, Domino’s said it advised in its update to the market that the Christmas trading period would be an important factor for H1 results, and management expected to deliver a turnaround in sales performance in Japan. The Christmas trading week in Japan delivered higher same-store sales than the prior corresponding period, but they were not sufficient to deliver positive network sales for December.

In the newer Asian markets strong sales growth in Singapore, and improving sales momentum in Taiwan, have been offset by a recent softening in trading in Malaysia.

Domino’s H1 preliminary NPBT is expected to be between $87-90m. This is below H1 23 ($104.8m), but higher than the preceding Half (H2 23, $74.4m). The preliminary result for the 26 weeks ending 31 December 2023 is based on underlying earnings and remains subject to audit review and finalisation

“Across the Group, we are focused on delivering inspiring, NEW products that are great value. We are also very Mission Focused on becoming ‘The Dominant Sustainable Delivery QSR in every market by 2030’, and delivery growth has been the biggest engine room in most markets. This has been led by Australia/New Zealand where customers are rewarding us with more frequent orders and a higher ticket and, as a result, the business improvement has been fastest. Many of the same approaches are showing positive signs in Europe. Our Franchisee partners in ANZ and Europe are improving average unit economics but there is more work to do, and this will remain an ongoing focus in all markets into the 2025 Financial Year,” Meiji said,