Domino’s upgrades forecast

dominos-cheltenhamDomino’s has upgraded its earnings forecast after first quarter sales beat the company’s expectations.

The homegrown pizza chain expects full year underlying profit to rise by 25 per cent to A$57 million, up from its earlier forecast of 20 per cent growth.

Don Meij, CEO at Domino’s, says same store sales growth across the business has been above management’s expectations, leading to the improved forecast.

Momentum has been positive across the business, with same store sales growing by 10.7 per cent in Australia and New Zealand and by 7.5 per cent in Europe.

Japan’s same store sales grew in line with expectations at 1.2 per cent.

“With first quarter results exceeding management’s expectations, we are confident of building on the current strong momentum and have upgraded our earnings and net profit full year guidance to be in the region of 25 per cent,” said Meij.

He also confirmed plans to open up to 185 new stores in all of its six markets this financial year.

Domino’s made a A$42.3 million profit in the 2013/14 financial year, up almost 50 per cent on the prior year.

Domino’s plans to roll out GPS tracking systems at all stores across Australia and New Zealand by June next year.

The first phase of the system is focused on increasing driver safety and efficiency. Phase two is for customers to be able to track their pizza order from the store to their door.

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