Australia’s Domino’s Pizza Enterprises Ltd. (ASX: DMP) released its half year report to the ASX this morning.
Domino’s Pizza Enterprises is the name behind the rapid-fire pizza shops around Australia, Japan and parts of Europe. It is a $4 billion company, according to Google Finance.
This morning, Domino’s Pizza released its half-year report to the ASX and its shares were subsequently sold down 7%.
Here are the key news events from the Domino’s Pizza report:
- Revenue came in at $568 million, up 5% on the prior corresponding period
- Profit was up 17% to $59 million
- It announced an interim dividend of 58.1 cents per share, franked at 40%
Domino’s said the result was driven by menu innovation and operational improvements. On a same store sales basis, which compares sales on a like-for-like basis from one period to the next, Domino’s said it achieved 4% growth.
Domino’s had 2,193 stores as of 31 December.
CEO Don Meij said reduced delivery times and new products would help bolster the company’s second-half results.
“Our goal is to give existing and new customers more of what they want; menu options, cooking times and a simplified ordering experience that exceeds expectations and the response from our customers demonstrates the importance of this approach,” Mr Meij said.
“As we enter H2 our targets are designed to set new benchmarks for performance, which we believe are achievable based on our forecast improvements in Same Store Sales growth across our network.” – Meij
Domino’s Australia and New Zealand reported a 4% increase in same store sales with operating profit up 16%.
“The result was slightly softer than we anticipated, but we remain committed to exceeding our customers’ expectations with a menu and customer experience that listens to, and exceeds, our customers’ cravings,” Domino’s ANZ CEO, Nick Knight said. “Adding avocado, Extreme Desserts, and our very first Dessert Pizza, typified this approach, and we rounded out H1 by adding our 16” New Yorker range, that met a previously unsatisfied demand.”
In Europe, same store sales grew 8% and the company ended the half with 891 stores.
Finally, Domino’s Japan same store sales fell 2%, which the company attributed to adverse currency movements.
Looking ahead, Domino’s has a target of 4,650 stores by 2025.
In its 2018 financial year the company’s new store openings target is between 310 and 330, including Hallo Pizza conversions.
On Wednesday, Domino’s Pizza Enterprises shares were trading 6.3% lower at $46.39, according to Google Finance.
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