Dominos has announced a new Chair, set to take the role in April, as well as a slight dip in revenue, higher sales and a higher dividend.
Sales Dominos Pizza Group, the UK-based subsidiary of Domino’s Pizza Inc, rose two per cent to £1,571.5m in the 52 weeks to December 29, from £1,540.5m last year.
Earning before interest, tax, depreciation and amortisation (EBITDA) at the firm, which operates in both the UK and Ireland, rose 6.4 per cent to £143.4m.
Revenue fell 0.4 per cent, from £667m to £664m, while profit after tax fell 21.6 per cent to £90.2m.
Dominos attributed the significant post-tax profit drop to the comparative base of 2023 when the company sold its stake in a German joint venture and received £79.9m.
The company proposed a final dividend of 7.5p per share, bring its total 2024 dividend up 4.8 per cent year on year to 11p.
“Today’s results show the benefits of our long-term strategy,” CEO Andrew Rennie said. “We’ve capitalised on our competitive strengths, agreed a new five-year framework with our franchise partners and opened 54 stores.
“Our trading momentum accelerated as the year progressed, our delivery channel returned to growth and we delivered strong underlying earnings growth,” Rennie added.
Dominos has been heavily targeting store and digital expansion as part of its target to reach £2bn s in sales from more than 1,600 stores by 2028.
However, Robin Hood analyst Dan Lane warned: “Uncertainty seems to be the theme today at Domino’s”.
“UK shares are now much cheaper than DOM’s US sibling, as one of the most shorted stocks on the UK market.
“To get back into the market’s good books, profits really need to start motoring under the new five-year framework. If they don’t, investors are likely to pile even more pressure on the pizza brand,” Lane added,
Dominos said it expects its underlying EBITDA for 2025 to be in line with current market expectations.
Ian Bull announced as new chair
Separately, Dominos announced the appointment of Ian Bull as Chair of the company. Bull will replace Matt Shattock following the AGM on April 24, 2025.
Bull has been a senior independent director of the company since September 2019 and previously served as CFO of leisure and hospitality businesses, including Greene King, Ladbrokes, and Parkdean Resorts.
Shattock, who has been in the role for five years, said Dominos needs a UK-based chair. Shattock has been based in the US for many years.
Ian Bull said: “Domino’s today is a very different business to five years ago and Matt’s guidance and leadership have been hugely valuable, helping stabilise the business initially and moving it onto the strong footing for future growth it has today.
“I’m delighted to be stepping into the role and look forward to working with my fellow Board members, our CEO Andrew Rennie and all our team members and franchise partners as we take the business to the next level.”
Bull will receive £375,000 in annual pay.