Pizza maker Domino’s has seen global sales grow 14.6 per cent to $3.7 billion off the back of social restrictions in many of its markets, which led to increased delivery volumes.
The business’ full-year EBIT hit $293 million, a 27.2 per cent spike on last year, with online sales growing 21.5 per cent to $2.93 billion throughout the year.
In the group’s ANZ business, improved margins grew local EBIT 14.1 per cent to $116.8 million.
“Stores in each market are responding to local conditions,” group chief executive and managing director Don Meij said.
“Societal restrictions remain in place in most markets, which continue to affect carry-out sales while delivery orders remain strong.
“We recognise our business is privileged to continue to serve our communities during this time [and] four our team to lift their efforts to serve more customers (particularly through delivery) and to open a record 285 stores [worldwide] is a remarkable achievement that deserves recognition.”
The majority of these new stores opened in Japan, which set a record of 126 new stores in a calendar year for the business.
Domino’s Australia and New Zealand chief executive Nick knight said he believed Domino’s didn’t succeed because Covid-19 caused a shift in consumer behaviour, but because the business was prepared for such a shift.
“Our recent performance owes credit for our decision to invest in Operations 360 and to operate a larger number of corporate stores, with higher costs, where former franchisees no longer had the passion or capability to excel in this business,” Knight said.
“More stores reduces the last mile of delivery, giving customers a better experience, franchisees improved unit economics, and Domino’s a fortressed presence in the QSR industry.”
And moving forward Domino’s will invest in building out its presence in ‘opportunity markets’ through a ‘multi-million-dollar’ investment into Project Ignite: an initiative to drive network growth by giving expanding franchisees access to incentives such as fee reduction, royalty waivers, and build incentives for the first three years.