Domino’s Pizza has exciting plans for expansion as they announce intentions to open more than 50 new branches this year. The popular takeaway pizza chain, listed on the London stock exchange, reported a significant 8.4% increase in underlying pre-tax profits to £107.3 million for the year on a comparable 52-week basis. Adjusted like-for-like system sales also saw a slight uptick of 0.7%, attributed to improved trading throughout the year. Notably, in the last quarter of the year, like-for-like sales spiked by 3%, indicating a positive trend for the company.
With a focus on their delivery service, Domino’s saw a 2.4% increase in delivery orders over the year, while collection orders saw a more modest rise of 0.5%. Riding on the success of opening 54 new stores across the UK and Ireland in 2024, the chain is set to continue its growth trajectory with plans for over 50 new stores in 2025. Despite citing concerns over the “uncertain economic environment”, Domino’s remains optimistic as sales have continued to climb in the first ten weeks of the new fiscal year, with system sales up by 2.4% and like-for-like sales maintaining a 0.7% increase.
The company is on track to meet analyst expectations for underlying earnings to surge to £146.4 million in 2025, surpassing the £143.4 million reported in the previous year, which marked a 6.4% rise from 2023. According to Domino’s, the year 2024 marked a return to delivery growth for the company, and they see an opportunity to further drive growth in collection orders in 2025 through value-based marketing strategies. The brand’s market positioning continues to strengthen, with forthcoming initiatives such as loyalty programs and menu innovations aimed at enhancing the customer experience and fostering growth within the system.
Despite a decline in pre-tax profits to £124.9 million on a statutory basis for the 52-week period ending on December 29, down from £142.3 million in 2023, Domino’s CEO, Andrew Rennie, expressed positivity about the company’s performance. Rennie highlighted that trading momentum picked up pace as the year progressed, and he sees a promising start to 2025 despite the uncertain market conditions. In a strategic move, Ian Bull, former chief financial officer of Greene King and Ladbrokes, was appointed as the new chairman of Domino’s, taking over from Matt Shattock upon his departure in April.
Domino’s success story serves as a beacon of hope amidst challenging times for the food industry, with the company showcasing resilience and adaptability in the face of economic uncertainties. As they gear up for a year of expansion and innovation, customers can expect an enhanced pizza experience with a focus on quality, convenience, and value. With Domino’s commitment to driving growth and strengthening its position in the market, pizza lovers across the UK can eagerly anticipate the opening of new branches and exciting menu offerings in the coming year.