Domino’s Pizza Group PLC on Tuesday reported annual earnings growth and said it has taken full control of an Irish franchise business.
The Milton Keynes, England-based pizza delivery firm, and UK franchise of wider fast food company Domino’s Pizza Inc, said revenue in the 53 weeks to December 31 rose 13% to £689.8 million, from £600.3 million in the 52 weeks to December 25, 2022.
Revenue growth was driven by an increase in system sales volume, acceleration of store openings and ‘the pass-through of increased food cost’, Domino’s explained.
Pretax profit surged 44% to £142.3 million from £98.9 million.
‘Last year we continued to make strong strategic progress with 61 new store openings whilst offering our customers compelling value. These efforts delivered an increase in sales and shareholder returns with continued robust profit growth,’ Chief Executive Officer Andrew Rennie said.
The firm lifted its final dividend by 5.9% to 7.2 pence per share from 6.8p, bringing the annual payout to 10.50p, up 5.0% from 10p in 2022.
Looking ahead, Domino’s said it has maintained strong momentum in the first quarter of financial 2024, with seven new stores opened, and a further 33 with planning consent or under construction. It said it expects to open more than 70 stores in financial 2024.
In addition, Domino’s said it will acquire the remaining 85% shareholding it does not already own in Shorecal for €72 million. It is acquiring the interest from Charles Caldwell, Adrian & Anne Caldwell, and SC Holdings I Ltd, an investment vehicle controlled by Radcliff Management in partnership with the Bronfman Family Office.
Domino’s Pizza Group said it will also repay outstanding debt on completion, currently totalling €19.9 million. The company added: ‘Shorecal is a leading Domino’s franchisee on the island of Ireland, operating 34 of the 99 Domino’s stores across the Republic of Ireland and Northern Ireland.’
Shares in Domino’s were down 8.8% at 335.74 pence each in London on Tuesday morning.
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