Domino’s Pizza, the pizza delivery chain led by Chris Moore, this morning unveiled an 8.4% increase in like-for-like sales across 501 stores in 2009.
Reporting its final results for the year to 27 December the company said system sales at 608 sites had surged by 16% to £406.9m and profit before tax was up by 27.8% at £29.9m.
The operator, which sponsors Britain’s Got Talent, said it had also started 2010 in the same vein with an 11% hike in like-for-likes in the first six weeks of the year - despite the impact of the snow in early January where delivery drivers were affected by the harsh conditions.
Moore, Domino’s chief executive, said: “I am delighted to report another exceptional set of results. We continue to succeed, even in the current harsh economic conditions, because of our unrelenting focus on the quality of our pizzas, intense devotion to service and by marketing to our customers when and where they want to order.
"There is a strong desire for expansion by our existing franchisees as well as a significant number of new franchisees wishing to enter the system. This demand, combined with our recent successes in smaller locations and the availability of good properties at sensible rents, has led us to accelerate our store opening plans and move our expectations from 50 to 55 new stores each year.
"While we are delighted with this early performance, we face some very tough comparatives particularly in the second half, and an unpredictable economic environment. Despite this, we are confident that we are well-positioned for another year of strong growth."
A major factor of the Domino’s performance was the internet. The group revealed that online sales grew in 2009 by just over 40% to £78.7m.
It was also boosted by record viewing figures for the ITV show Britain’s Got Talent and by what it described as “good use of short-term tactical promotions”.
Domino’s said it had recruited 18 new franchisees and increased average number of stores per franchisee to 4.5, up from 4.2. It also delivered to 3.4 million households, an increase of 18.9%.
Domino’s franchisees had also benefitted in 2009.
Moore added: “Our franchisees' businesses are also more profitable than ever. Average weekly unit sales in our mature stores have risen by 8.4% and average profit by an incredible 23.4%. It is this win-win relationship that ensures our franchisees are as motivated as we are to push the boundaries of their business.”
Out of the circa 8,900 stores globally, Domino's Pizza UK & Ireland has eight out of the Top 10 stores and 20 of the Top 20 in international sales.
The group is targeting 1,200 stores by the end of 2021 and has upped its rate of openings to 55 per year.
Improvements were also made to the speed of the service, added Domino’s, with the out of the door time key performance indicator down to 13.4 minutes and an average delivery time of 23 minutes.
The company has also developed its first Domino’s mobile unit, the brainchild of two Scottish franchisees, which was used at big events and music festivals.
Basic earnings per share were up by 27.2% to 13.81p and diluted earnings per share improved by 26.0% to 13.49p.
The group’s adjusted net debt to ebitda ratio was 0.5:1.
