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Domino's serves up tasty full-year numbers as profit jumps 10%
Domino's Pizza posted a rise in full-year pre-tax profit on Thursday as revenue grew thanks to a solid performance in the UK and abroad.
In the 52 weeks to 24 December 2017, underlying pre-tax profit was up 10.2% to £94m on revenue of £466.5m, up 29%. Group system sales were 15.1% higher at £1.18bn and underlying basic earnings per share increased 14% to 15.7p.
The company recommended a final dividend of 5.25p per share, up 16.7% and giving a full-year dividend of 9p per share, up 12.5%.
Domino's said the UK market moderated this year after three years of very strong like-for-like growth as consumers are more cautious and value-conscious, with incomes squeezed as wage inflation lagged broader cost inflation.
In the UK and Ireland, system sales were up 9.2%, while UK system sales rose 8.6% and like-for-like store sales in the UK were up 4.8%, with new store growth the key driver. After 81 new openings in 2016, Domino's franchise partners opened a further 95 in 2017. It now has 1,045 stores across the UK and said it is confident of reaching its target of 1,600.
Chief executive officer David Wild said: "2017 has been a year of significant progress for Domino's, despite the weaker consumer demand and cost inflation affecting the sector. Given this backdrop, I am particularly pleased with our performance. In the UK, system sales broke through £1bn for the first time, helped by a record 95 new store openings.
"We also took action to improve value for customers, and this led to improved growth in H2, benefiting shareholders and franchisees alike. Our international operations are becoming a more material part of the Group. In Ireland and Switzerland, system sales growth accelerated, supported by very strong digital performance. In the Nordics, the move to majority control and the acquisition in Norway demonstrate our increasing confidence in the opportunity."
Domino's also said on Thursday that itt plans to invest up to £50m in 2018 in its share buyback programme.
At 0810 GMT, the shares were up 8.2% to 344.10p.