More stores for Domino’s after positive FY21 sales
In Australia and New Zealand, improved sales resulted in an 14.1% EBIT growth to $116.8 million.
Domino’s Pizza Enterprises is increasingly optimistic about its expansion plans as it experiences growth amid the lingering effects of the pandemic.
Total sales for the ASX-listed firm’s 2021 financial year jumped 14.6% to $3.7 billion, with earnings rising 30% to $188 million.
New store openings are expected to increase to 9% to 12% per year, up from the company’s 7% to 9% range. It also opened 285 new restaurants during the year, increasing the number of outlets by 10.7%. A majority of these stores came from its Japan business, setting a record of 126 new stores – the first time one of their markets surpassed 100 stores in a calendar year.
“Stores in each market are responding to local conditions – societal restrictions remain in place in most markets, which continue to affect carry-out sales while delivery orders remain strong,” said group CEO Don Meij.
“We recognise our business is privileged to continue to serve our communities during this time. For our team to lift their efforts to serve more customers (particularly through delivery) and to open a record 285 stores, is a remarkable achievement that deserves recognition.”
In Australia and New Zealand, improved sales resulted in an 14.1% EBIT growth to $116.8 million.
Nick Knight, the company’s CEO for Australia and Zealand, said the business grew in the two markets due to a “strategic shift in the franchisee base.”
“Make no mistake – trading conditions have been challenging and we see this continuing into FY22 – but we have seen a lift in operational performance and a resulting improvement in franchisee profitability, because our refranchising and new stores have come from within,” he said.
“We will reinvest to ensure we take the next step to build out our opportunity markets – more stores reduces the last mile of delivery, giving customers a better experience, franchisees improved unit economics, and Domino’s a fortressed presence in the QSR industry.”
