Domino’s profits rise to $138.4m
With more Australians eating at home due to lockdown restrictions, Domino’s has delivered a strong result in a difficult year, with net profit up 19.4 per cent.
Profit rose to $138.4 million across the quick-service chain, driven by revenue growth of 32.7 per cent to $1.9 billion.
Performance in Australia and New Zealand demonstrated the importance of experienced, people-focused franchisees to the resilience of the business, said local CEO Nick Knight.
“I remain convinced the key to our company’s ability to adapt to meet changing regulatory and customer expectations has been the strength of the franchise model,” Knight said.
“Even where we were required to temporarily close 134 stores in New Zealand, the response from our franchisees to serve our communities through to their closing hours, and to be the first stores to reopen when able, was heartening.”
Together, Australia and New Zealand contributed $693 million in revenue during the year.
And while global and local figures are heartening, they are not the most important factor in the company’s year according to Group CEO Don Meij. Throughout FY20, Domino’s employed 65,000 team members, advertised for a further 13,000, and purchased more than 15.5 million items of PPE to keep its people safe.
“These are some of the most important investments I have been involved with in more than 30 years in this business,” Meij said.
And the year ahead has started off strong, with the last three months of FY20 showing sales performance on the rise, with same-store sales growth of 11 per cent. These figures would be pleasing in any other year, Meij said, but the business knows it can be subject to further governmental restrictions across any market at any moment.
“The effect of societal restrictions is not entirely within our control. What is in our control is how we respond to our environment and customer expectations,” Meij said.
“The performance of our people during Covid-19 underpins our performance in the long-term future of our business [and] our franchisees will be the driving force of this expansion.”
This article first appeared on Inside Retail, a sibling website to Inside Franchise Business Executive.