Domino’s global earnings boosted to $218.7m

By Dean Blake | 17 Feb 2021 View comments

Quick service chain Domino’s improved its global EBITDA by 23.8 per cent during the six months to December to $218.7 million

Global sales rose 16.5 per cent to $1.84 billion, with an average of five new stores opening each week. Like-for-like sales grew 8.5 per cent.

Group chief executive Don Meij said the pandemic has brought forward the customer desire for food delivery to step up online, and that the business’ investment in its delivery platform set it up for success.

“Prior to this pandemic affecting our communities, management’s view was the strategy that had delivered our performance over the last decade would deliver growth for the next decade,” Meij said.

“Covid-19 has not changed this view – high quality food at an affordable price, served quickly and safely, benefits both our franchisees and our customers – and our recent performance reinforces it.”

Domino’s has investment millions into the growth of its delivery platform, from allowing customers to create a pizza in AR to using AI to grade pizza’s fresh from the oven to ensure each meal is sufficiently crafted, to a ten-minute store-to-door delivery guarantee .

The business operation in Australia and New Zealand saw EBIT improve 9.8 per cent to $63.7 million, while franchisee sales grew 5.7 per cent to $648 million.

Delivery growth remained strong in the region, while pick up orders continued to be impacted by movement restrictions on customers.

“I am pleased that the efforts of our franchisees are being rewarded, with higher levels of customer satisfaction, increased sales, and record levels of franchisee profitability,” said Domino’s ANZ chief executive Nick Knight.

However, the business’ Japanese arm delivered the strongest growth– with sales up 42.6 per cent to 36.7 billion yen ($450 million), and EBIT up 112.3 per cent to 4.2 billion yen ($51 million).

This article was first published on Inside Retail, a sibling website to Inside Franchise Business Executive.