Domino’s finds positives amongst the gloom, consumers still keen on pizza
Australian owned and operated Domino’s Pizza Enterprises Ltd (“Domino’s”) announced at their AGM yesterday that positive same store sales growth had been recorded during the first four months of trading for 2008/09 in all markets, as their global expansion continues in earnest.
Domino’s Chief Executive Officer Don Meij said markets were currently performing well given the current global economic climate. “With four months of trading already completed, group sales are currently ahead of expectations and all markets have recorded positive same store sales growth,” he said. “However, we still have eight months of trading ahead of us and we are coming up against some strong promotions. Therefore, management remains positive but cautious.”
While Domino’s, Australia’s only publicly-listed pizza company, expects the current economic environment to have an impact on lending for store growth, they also expect to see some benefits.
“While it’s unfortunate that the community is experiencing tough times, there are some underlying benefits for our business. Pizza remains an affordable meal for families given it’s a good value takeaway alternative to eating out,” Mr Meij said. “We will also continue to offer employment opportunities across the business, which is good news. During recent years, with very low unemployment, we’ve found it tough to staff our stores and we can now look forward attracting more quality team member.”
Domino’s expect growth to continue into 2008/09, with the company to add new stores to the group and strengthen the brand in all five countries.
“By June 2009 we expect to open between 40 – 50 new stores across Australia, New Zealand, France, Belgium and The Netherlands. We are also looking at new marketing and operational initiatives which will see a new approach to the brand in all markets,” Mr Meij said. “The weakening Australian Dollar will also aid our earnings results in Europe and New Zealand.”