Domino’s records double digit growth

Domino’s Pizza Enterprises recorded a strong 14.5% sales growth in the half year ended December 30, to $328.6m, producing a bottom line increase of 2.8%, to $9.4m.

Don Meij, Domino’s chief executive officer, attributed the strong performance in an otherwise difficult economic climate to increased online business, prompting the company to upgrade its Australian and New Zealand websites.

Online orders now account for 19% of orders in Australia - up 290% on the previous corresponding half year. The site was the most visited site in the food and beverage - restaurant and catering category in November and December, according to Hitwise.

‘Online ordering continues to impress us. That’s why we’ve launched new websites in Australia and New Zealand.’ Meij said today. ‘We will also see an increase in online sales across all countries going forward, following the launch of France’s stores.’

The increase in sales chiefly reflected the increase in outlets - up by 15 to 756, including 11 stores in Europe and four in Australia and New Zealand, two of which were stadium stores.

Same store sales in the period were slower than the previous year at 4.2% - down from 7.6%. However, same store sales in January were up 5.2% on the previous year.

‘Despite the economic downturn, customers are still appearing to be supportive of the fast food category,’ Meij said.

The franchisor of the Domino’s Pizza brand operates 513 outlets in Australia and New Zealand and 243 in France, Belgium and The Netherlands.

Company revenue was down 2.1%, to $113.4m, reflecting the transfer of company-owned stores into the Domino’s franchise system.

At present, the corporate store sell-down is moving slower than expected and 20 stores are still left to sell.

The company expects to maintain growth momentum in 2009 generated by an on-track increase of 40 stores, growing online business and menu expansion into pasta.

Further reading: Domino’s Pizza enters pasta wars