Domino's Pizza Enterprises Annual Report

Opening record in Germany

Business is good for Domino's,
Domino's
Business is good for Domino's,

46 new stores in Germany even surpass the opening record of Domino's Pizza from the 2020/21 fiscal year. And the stars are also looking good for the delivery specialist throughout Europe. That's according to the annual report (fiscal year ended June 30) of Domino's Pizza Enterprises (DPE), the parent of Domino's Pizza Germany.

The company is also seeing strong expansion across all of DPE's existing markets - Australia, New Zealand, Belgium, France, Netherlands, Japan, Germany, Luxembourg, Denmark - calling it the "most extensive expansion through new stores in the company's history." Domino's opened 294 new stores. That equates to more than five additional stores per week. In addition, DPE took over the Taiwanese market with 156 stores. The company also plans to grow strongly in the coming year - targeted at 9 to 12 percent - and is taking over the Domino's markets of Malaysia, Singapore and Cambodia.

Europe: Denmark dampens operating profit

In Europe (DPE markets only), system sales were up 4.3 percent, an increase of $62.9 million (USD). On a three-year basis, by as much as 35 percent (USD +398.5 million). 123 new stores were opened. This brings the number of stores in DPE's European markets to 1,401, with a target of 3,050 stores by 2033, a 2.2-fold increase in the size of the market in Europe.

EBIT before COVID is now $14.1 million higher (+21.8%), but $9.7 million lower than the previous year (-11.0%); the main reason given is the additional investment in rebuilding the operating business in Denmark.

André Ten Wolde, CEO of DPE Europe, comments, "After Covid-19, we are now facing new challenges, such as high inflation and staff shortages. Especially for Europe, there is no standard solution here. We have had to raise some of our prices somewhat and will probably have to continue to do so - as all companies are doing at the moment. At the same time, we want to offer our customers more choice and additional value. Domino's delivers hot, freshly prepared food - quickly and at a reasonable price. At the same time, we protect our franchise partners through higher sales and margins to at least somewhat offset inflation."

Germany: Unit number 400 and Nutri-Score

In Germany, Domino's celebrated the opening of its 400th unit. "We are proud, especially in these challenging times, to further expand our growth and thus our position as market leader in Germany. Through new technologies, such as the improvement of our Domino's app and ordering website or the delivery robot test run with AI specialist Teraki in Berlin, we are already preparing for the market of the future!" said Stoffel Thijs, CEO Domino's Pizza Germany.

In spring 2022 
Domino's became the first quick-service restaurant chain in Germany to introduce the Nutri-Score on its website, a five-level nutrition traffic light system from A to E. This continues Domino's' move toward transparency and commitment to quality, the company says. In addition, DPE Europe initiated the Domino's Pork Commitment in May, through which Domino's aims to promote higher animal welfare standards for pigs and sows.

Goal: climate neutral by 2050

Domino's Pizza Enterprises also formulates ambitious sustainability targets. Last year, the first baseline assessment of Domino's environmental footprint was carried out - the goal is zero emissions from the year 2050. the climate targets are being reviewed by the organization Science Based Target initiative (SBTi).

As reported by Marika Stegmeijer, Chief ESG Officer of DPE, the largest environmental footprint at Domino's is in the "Scope 3" emissions area, i.e. outside the direct control or ownership of the company, but within Domino's indirect sphere of influence.

Marika Stegmeijer continues: "The biggest impact on the environment comes from our value chain; we cannot influence these emissions directly. Nevertheless, we need to focus on this if we want to contribute to limiting global warming to 1.5 degrees. We know this, and we want to continue working with our business partners to reduce our emissions in our value chain."
About Dominos Pizza Germany and DPE
Domino's Pizza Deutschland is the market leader in pizza home delivery with more than 400 stores, more than 180 franchisees and over 10,000 employees, and is one of the ten largest gastronomy franchisors. The brand prepares 30 million pizzas annually. Foodservice sales in 2021 were 355 million euros, according to foodservice's top 100 ranking.

Domino's Pizza Enterprises Ltd
is the world's leading franchisee of the successful U.S. brand Domino's Pizza and holds exclusive rights to the brand and network in the following markets: Australia, New Zealand, France, Netherlands, Belgium, Luxembourg, Japan, Denmark, Taiwan and Germany.
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