Domino’s Pizza Enterprises says it expects to continue to raise prices as it faces “historic inflationary headwinds.”
The pizza-to-go giant also revealed that it has entered into a binding agreement to acquire three new markets: Malaysia, Singapore and Cambodia, comprising 287 company-operated stores.
“As a result of this acquisition, Domino’s is increasing its future store count in Asia from 2,400 stores to 3,000 stores by 2033,” the company announced Wednesday.
Reporting its financial results for 2021-2022, Domino’s said revenue rose 4.1% to $2.289 billion as net profit fell 14% to $158.7 million following the shutdowns in Europe and Asia and rising costs.
Sales on its network rose 4.6% to $3.92 billion, while online sales rose 4.4% to $3.06 billion.
“Customer pricing is complex and there is no one-size-fits-all approach.” We had to increase some of our prices slightly and will probably have to increase more – like all companies right now. Similarly, we offer ‘inflate grinders’ which win new customers by showcasing the value we offer,” said Domino Group Managing Director Don Meij.
“It all adds up to delivering ‘ultimate value’, striking the right balance: giving customers choice and value, while protecting franchisees with increased revenue and margin to help offset the inflation.
“It is important to note that the response from customers has been positive, as when considering their meal choices, within our range of menu offerings, and even compared to a home-cooked meal, Domino’s offers a hot meal and fresh, delivered quickly, at an affordable price. .
“This is an ongoing process and we appreciate the support of our existing and new customers during these extraordinary times.”
Domino’s has also cut its final dividend, with shareholders due to receive 68.1c per share on September 15, from 85.1c per share the previous year.