Domino's delivers record sales
The company reported record earnings and issued a response to media reports about its alleged underpayment of wages.
Network sales for the first half of the year rose 26.8% to more than $1 billion ($1,166.1 million), the first time in the pizza company’s history. Group revenues grew 21% to $539.4 million.
Domino’s also responded to allegations of franchisees underpaying their workers.
“Our franchisee profitability figures clearly show there is no reason, nor excuse, for this behavior,” Chief Executive Officer and Managing Director Don Meij said.
“The findings from our compliance program demonstrate no correlation between store profitability and underpayment of wages.”
Domino’s said that it has removed four franchisees from its system, operating seven stores, for willful breaches of employment obligations. An additional 22 franchisees left of their own volition.
“I would prefer all of our franchisees lived up to our expected standards, and I am disappointed some individuals have tried to take advantage of our business, and team members. But I am proud that our proactive team has uncovered this wrongdoing and corrected it,” Meij added.
In light of its financial results, the company upgraded both underlying EBITDA and NPAT targets for the Full Year to be in the region of 32.5% growth, following a 33.6% lift on the prior corresponding period in underlying EBITDA to $116.2 million, and a 30.8% increase in NPAT to $59.7 million.
Across the Company’s seven markets in Australia, New Zealand, Belgium, France, the Netherlands, Japan and Germany, Group same store sales grew 9.4% for the Half Year, on increased customer counts due to the Taste the Colour menu launch in Australia and New Zealand and improved technology across all markets.
For the Australia and New Zealand region, Domino’s reported 23.9% growth in underlying EBITDA to $55.2 million, with 17.2% growth in revenue to $150.1 million. The company also reported that it has opened 27 new stores in the area, and are set to open an additional 35 stores before July.
Photo credit: Domino's website
