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Domino’s eyes Eagle Boys

dominos-cheltenhamDomino’s is eyeing troubled rival Eagle Boys as it plans to almost double its Australia and New Zealand store network in the wake of another record profit.

The fast food retailer outlined the aggressive nine-year expansion plan after new store openings and strong same-store growth in six of its seven territories lifted full-year net profit 28.7 per cent to $82.4 million.

Revenue rose 30.9 per cent to $705.7 million in the 12 months to July 3, with Australia and New Zealand leading the pack in terms of same-store sales growth.

Domino’s biggest market showed a 14.8 per cent increase in same-store sales, against a company-wide improvement of 10.9 per cent.

“Many of our new stores are hitting volumes we would never have dreamt of,” CEO┬áDon Meij said.

“We need to open up new stores to meet the pent-up demand.”

Domino’s wants to expand its Australia and New Zealand store network from 714 to 1200 outlets by 2025 – 300 more than it previously targeted – by which time it plans to have 4550 stores across the globe.

Meij said the next acquisition could come within six months or it could take as long as three years, although he confirmed an interest in rival Eagle Boys, which was put up for sale after going into voluntary administration in July.

“We are taking a look. It is quite small,” Meij said of the near 120-store chain.

Meij said that, even with 1200 stores, Domino’s would still trail McDonald’s, Subway and KFC as the fourth largest player in the $20 billion-plus quick service restaurant sector in Australia and New Zealand.

That meant there was plenty of room to grab a bigger market share, he said.

Meij said a broad range of desserts, breads and other side dishes was stealing customers from non-pizza outlets.

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