Domino’s Pizza sticks to guidance, says this is a year to rebuild
Domino’s Pizza Enterprises chief executive Don Meij says the company will spend this year “rebuilding”, telling shareholders at its annual meeting in Brisbane that a cost-cutting program was on track.
Domino’s will celebrate 40 years in Australia next month, and Mr Meij is hoping that new products will grow sales and margins, and innovation in packaging will reduce waste and help deliver fresher product to customers.
Domino’s Pizza CEO Don Meij (left) and chairman Jack Cowin at the company’s AGM in Brisbane. Dan Peled
Mr Meij’s attempts to recoup rising costs by increasing prices and service fee charges last year was met with hostility from customers, and his focus has reverted to providing better value. The one-time market darling is cutting costs, having already closed its Danish business, a move expected to deliver savings of $50 million to $70 million this year. The chain is also facing a resurgence by smaller rival Pizza Hut in Australia.
Mr Meij told shareholders that earnings in this year will be higher than the prior year, helped by restructuring. After-tax profit fell 74 per cent to $40.6 million in 2023, with earnings down 23 per cent. Earnings in the first half of this year are tipped to be materially higher than the second half 2023.
“We are well advanced on closing our commissaries in Asia and have written down the value of some legacy IT assets in our newest markets,” he told investors. “And we have almost finalised our restructuring plans that include the reduction of some roles in our support offices in each region.”
The Jack Cowin-chaired Domino’s expects earnings growth to flow from closing underperforming corporate stores and moving others to high-performing franchisee partners. He said these actions
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