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Business Description: Domino's Pizza Enterprises Limited (DMP) is the Master Franchise licence owner of the Domino's Pizza brand. DMP sits in the Quick Service Restaurant segment within fast food retail and has a licence which covers Australia, New Zealand, France, Belgium, the Netherlands and the Principality of Monaco. The Domino’s brand is owned by Domino’s Pizza, Inc, a listed US company.
Strategy Analysis: DMP is implementing a number of strategies to expand and insulate the business from a tougher economic climate. In particular, there is continued focus on organic growth, coupled with a sell down of corporate stores. Across Australia and New Zealand there has been a shift towards increasing the quality of offerings, as well as menu expansion into sides such as pasta and chicken wings. The substitution of premium ingredients which are also available as toppings, at a surcharge, are being advertised heavily. Advertising through online, social-network sites, mobile and TV-based technology should serve as a cheaper form of promotion across all geographical areas.
Domino's Pizza Enterprises reported NPAT up 15.71% to $14.54m for the half-year ended 30 December 2012, driven by same-store sales and supported by successful marketing promotions. Revenues from ordinary activities were $140.8m, up 7.59% from last year. Diluted EPS was 20.6 cents compared to 18.0 cents last year. Net operating cash flow was $12.88m compared to $14.75m last year. The interim dividend declared was 15.5 cents, compared with 13.0 cents last year. During the half-year, the company added 11 new stores to its network in Australia and NZ, and 15 in Europe. This brings the total store network to 934 at the end of the period.
The Age 21/05/2013 |
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The Age 21/05/2013 |
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The Age 21/05/2013 |
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The Age 21/05/2013 |
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The Age 21/05/2013 |
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The Age 21/05/2013 |
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