Domino’s Pizza outlined plans to accelerate growth, eyeing 1,600 UK and Ireland stores and delivering £2bn of system sales by 2028.
The business, just covering the brand’s UK and Ireland operations, reported underlying pre-tax profits of £101.7m, on an 11.1 per cent rise in revenue and forecast “food cost deflation” this year.
However, a squeeze on personal finances had an impact on the frequency of orders with deliveries down by 4.8 per cent compared to the previous year.
It is also acquiring the remaining 85 per cent shareholding it does not already own in Irish franchise business Shorecal.
Andrew Rennie, chief executive said: “Last year we continued to make strong strategic progress with 61 new store openings whilst offering our customers compelling value.
“These efforts delivered an increase in sales and shareholder returns with continued robust profit growth. I would like to thank our world-class franchisees and colleagues for their immense hard work and dedication in achieving these results.”
He added: “In December I set out a framework for accelerating sustainable, long-term growth. Following a great year for store openings in 2023 we are accelerating our growth and expect to have 1,600 UK & Ireland stores delivering £2bn of system sales by 2028 and 2,000 stores by 2033 delivering £2.5bn of system sales.”
Today the board proposed a final dividend of 7.2p per share, resulting in a total dividend for 2023 of 10.5p per share, up five per cent on last year.
It was also announced that £90m was returned to shareholders through share buybacks in 2023.
Domino’s Pizza also recently launched a trial with Uber Eats that will let users order pizza on the platform for the first time.
The fast food giant is mulling whether or not a spot on the takeaway platform will help boost sales.
Mark Crouch, analyst at investment platform eToro, said: “Despite the backdrop of inflation observed in the last year, Domino’s remains committed to delivering value to its shareholders, evidenced by a five per cent dividend increase.
“As these input costs ease, we expect improvements in the bottom line, contributing to the ambitious growth plans for new stores in the UK and Ireland.”
He added: The takeaway market is arguably the most competitive it has ever been, yet the UK’s largest pizza chain has taken measures to adapt, including joining other delivery platforms to maximise its exposure.”
Shares in Domino’s were down over eight per cent in early trade.