Domino's Pizza Enterprises

Record figures on the German market

Delivery vehicle from Domino's Germany: Pizza delivery is booming despite Corona.
Imago Images / Waldmüller
Delivery vehicle from Domino's Germany: Pizza delivery is booming despite Corona.

A substantial increase in Corona times: Domino's Pizza Enterprises (DPE), the parent company of Domino's Deutschland, published its figures for the 2020 financial year, which ended on 28 June 2020. Some key points: For the first time, system sales of more than 3 billion US dollars (3.267 billion US dollars, +12.8%) with a 5.8% increase in same-store sales. The European markets, and Germany in particular, contributed the lion's share of revenues.

More than 72.1 percent of group-wide sales now come from digital channels. The long-term strategy of digitization, which the company has been pursuing for a good ten years, helped Domino's to master the challenges of the Corona crisis better than many other companies.

In the European market (Germany, France, the Netherlands, Belgium, Denmark and Luxembourg), the pizza supply chain increased its seed store sales by 2.8 percent and its revenues by 5.1 percent to EUR 749.1 million. Within the DPE Group (see box), the European countries thus made the largest contribution to the total revenues of the past financial year, which is equivalent to 1.6 billion euros. Due to temporary closures - among others in France - the group reports a 1.5 percent lower EBITDA for Europe than in the previous year of EUR 50.6 million.

Also due to Corona, the number of orders for delivery rose by more than 70 percent - in some countries even by more than 80 percent. Despite Corona, Domino's was still able to open new stores.
A total of 78 new stores were opened in Europe, including 13 in Germany.
About Domino's Pizza Enterprises
Domino's Pizza Enterprises Ltd is the largest pizza company in Australia. It is the world's leading franchisee of the successful American 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 and Germany. Domino's Pizza Enterprises Ltd operates around 2,500 stores with over 50,000 employees.

Germany: double-digit increase in same-store sales

Domino's Germany sees record sales, record profits and record returns for franchisees. In recent months, the company has also increased its investment in advertising by more than 40 percent. Stoffel Thijs, CEO Domino's Deutschland: "In particular the quality promise introduced last year and the 'Domino's Duo' - the second pizza for two euros every Tuesday and Wednesday - have been very well received by our customers."

DPE does not publish detailed sales figures for Germany in its annual report, but does mention a few key points. In October 2019 the company sold pizzas worth 5 million euros per week for the first time. In the course of the financial year, this brand was torn 21 times, once for seven weeks in a row. Viewed over eleven months, the German market recorded a double-digit increase in seed store sales.

Country markets Japan, Australia, New Zealand

The DPE also reports record figures from the country market Japan. System Sales grew by 25.9 percent and Same Store Sales by 18.4 percent. Josh Kilimnik, President and CEO, announced 75 new openings for the Japan business.

For the Australian and New Zealand markets, DPE reported a 4.1 percent increase in System Sales and a 5.1 percent increase in Same Store Sales. Ten new units were opened.

Expectations for the coming business year

For the 2021 financial year Domino's Pizza Enterprises expects an 11 percent increase in same-store sales and an 18.5 percent increase in system sales. However, DPE CEO Don Meij makes a qualification: "In ordinary times, I would be happy with a double-digit increase in same-store sales. But these are not ordinary times."

Due to the pandemic, entire national markets could be shut down at any time on short notice

Anyway, the company is sticking to its medium-term goals: over the next three to five years, Same Store Sales is expected to grow by 3 to 6 percent annually. The number of net new store openings is expected to be 7 to 9 percent annually.