Domino’s AGM: Product and technology innovation lift sales in all markets

Domino’s Pizza Enterprises Limited (ASX: DMP) today announced new customer- and store-focused initiatives will continue to drive sales growth for the full Financial Year.

At its Annual General Meeting in Brisbane, Group CEO and Managing Director Don Meij outlined the company’s achievements for the Financial Year-to-date, as well as product and project updates expected to increase efficiencies and attract new customers across all markets.

Trading update

Group Same Store Sales increased +2.91% on the previous corresponding period (pcp) for the first 17 weeks of trading of FY19.

Domino’s commenced FY19 with 2,393 stores, and has opened 36 organic new stores in this Financial Year to Date.

Domino’s highlighted the impact of new management for Domino’s Pizza Japan, which has delivered Same Store Sales growth of +5.00% for the Financial Year to Date, with 14 new stores already opened.

“We are very pleased by the performance of our business in Japan; this performance is directly related to the customer response to initiatives including 20 Minute Mission, and new product launches that tested well with customers,” Mr Meij said.

“The initiatives rolling-out in Japan, and the sales results, demonstrate the value in investing in our OneDigital online sales platform in all of our markets. We’re looking forward to this momentum continuing in the Christmas period.”

Domino’s today outlined initiatives for the Full Financial Year, targeting digital innovation, product innovation, and operational excellence including Project 3TEN.1

Customers can now order pizzas using Augmented Reality inside the Domino’s app2. In the new year, the Company will launch a new website and mobile ordering app in Australia/New Zealand. Domino’s will also launch its first ever Customer Loyalty program in the Netherlands, as well as On Time Cooking in Japan, to give carry-out customers a more rewarding ordering experience.

Australia/New Zealand

Domino’s will shortly make waves with the launch of its biggest, brightest and most delicious new Summer Menu ever.

Australia/New Zealand CEO Nick Knight said the new Summer campaign aimed to kick of the “Official Pizza of Summer”, targeting the unique occasions shared with family and friends.

“We’re excited by the initial response from customers in testing our new summer menu – we believe these 30 new delicious products, with new sauces, ingredients and products, will earn us a place in millions of Australian households this Summer,” Mr Knight said.

The Company is continuing to reduce its delivery time across the business, targeting an average delivery for a week of less than 20 minutes, safely, helped by more ebikes carrying more than 2 million deliveries this year – a new record.

Europe

Domino’s announced the integration of the Hallo Pizza business in Germany was progressing well, with 134 stores committed to convert to Domino’s stores in the second half of the Financial Year. Both the total number of stores, and the speed of conversion, are ahead of target.

Europe CEO Andrew Rennie said management in Europe is targeting a record number of new store openings this Financial Year.

“We made strategic steps in FY18 to build capability in management across all countries and we are confident we have the team in place to deliver results this year,” Mr Rennie said.

New product launches will include a New Yorker range in France, following its success in increasing customer numbers in Australia/New Zealand.

Japan

Domino’s Japan is preparing to launch new pizza offerings, following an extensive customer testing process.

Japan President and CEO Josh Kilimnik said this same process preceded the recent launch of the ultimate Italian range, that has already proven very popular with local customers.

“Our improved Same Store Sales this Financial Year are demonstrating that our customers appreciate product quality and exceptional service, and we are committed to delivering for them,” Mr Kilimnik said.

The Company’s franchised and corporate stores are committed to Project 3TEN, with lower delivery times – and the planned launch in of On Time Cooking – expected to increase customer satisfaction and grow sales.

Domino’s today confirmed the Yotsuyayonchome store set a new world record on Sunday, with a full week of safe deliveries completed in an average of 2m 38 seconds. It was achieved using only ebikes.

Looking forward

Mr Meij said Management was confident of the significant growth potential within the business, with the number of newly built stores increasing across the Group.

“We appreciate the hard work of committed people across our business who are Hungry to be Better in everything they do.

“It is their drive, determination and passion for this business that will see us continue to perform in the months ahead.”

For more information visit www.dominos.com.au.

Domino’s Pizza Enterprises Limited (DMP) is Domino’s largest franchisee outside of the USA. It holds the master franchise rights to the Domino’s brand and network in Australia, New Zealand, Belgium, France, The Netherlands, Japan, Germany and Luxembourg. Today, DMP has a network of more than 2,400 stores. For more information, visit www.dominosinvestors.com.au.

1 Project 3TEN which aims to have a carry-out order ready in three minutes, and a delivery completed in 10 minutes, from the time of ordering.

2 On compatible devices and tablets