Domino's plans to make more dough
Domino's plans to have 90 stores operating in New Zealand within four years to cement its position as market leader, the pizza maker says.
The Australian-listed master franchisor for the brand in Australasia, France, Belgium and the Netherlands yesterday reported a 25 per cent rise in annual net profit to A$26.9 million (NZ$34.9m), up from A$21.4m in the previous 12 months. Revenue for the year rose 7.4 per cent to A$264.9m, compared with A$246.7m in 2011. Same-store sales in Australasia rose 6.6 per cent.
Domino's does not break out the New Zealand net profit or sales figures but its financial report shows that of the $264m in global revenue, $168.5m came out of Australia and New Zealand for the year ended July 1. The company has 909 stores, 475 of them in Australia and 84 here.
Competitor Pizza Hut has 71 stores and reported sales last year of $45.5m. Pizza Hut is owned by NZX-listed fast food operator Restaurant Brands. In 2007, Pizza Hut had 103 stores and annual revenue of almost $80m but in 2010 it launched a programme to divest stores with smaller sales volumes, particularly in regional areas.
Domino's chief executive and managing director Don Meij confirmed the chain's push to retain its dominance in New Zealand. Also, it was expected the group could deliver net profit of about 15 per cent more than the 2012 group result. It intended to add up to 80 new stores to its global network. 'We expect to have a record number of organic new-store openings, particularly in our three European countries, and hope to open our 1000th store by December 2013.'
The company expects online sales to make up 55-60 per cent of total sales by June. Fairfax NZ
Taranaki Daily News