Domino’s supported by UK sales as international expansion falters
Domino’s Pizza Group has revealed mixed results for 2018 with UK and Ireland sales carrying the company during a tough international expansion.
The franchise model fast food company had a moderately strong year in its UK and Ireland business - which accounts for 90 per cent of its revenue - with UK system sales up 7.1 per cent and a 5.2 per cent increase in Ireland.
In addition to the sales increase, franchisees opened 59 new stores which created over 2,000 jobs. The company also completed its biggest UK investment so far with the opening of its new supply chain centre in Warrington.
The group’s overall underlying pre-tax profit was down 1.1 per cent, a dip which the company has attributed to “international impairments”.
David Wild, chief executive officer, commented: “2018 was a mixed year. In the UK and Ireland… We extended our excellent track record of growth and cash generation, responding well to the very challenging environment for the casual dining market.”
Speaking about the overall group performance worldwide, he added: “Internationally, we have experienced some growing pains which have hampered our overall financial performance.
“This is why we have strengthened our management teams and are committing disciplined capital to support future development. We expect an improved performance from International, with the business targeted to break even this year.”
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