February 2021 - Domino’s Pizza Enterprises Limited (ASX:DMP) is the Australian-owned master franchise holder for Domino’s in Australia, New Zealand, Belgium, France, the Netherlands, Japan, Germany, Luxembourg and Denmark. The Company was established in 1983 and today operates a network of over 2,600 stores. CEO and Managing Director Don Meij speaks with The Capital Network's Lelde Smits.

Strong profit and dividend growth in H1 FY21 on 16.5% jump in network sales
Domino’s rallied by around 7% yesterday after the release of H1 FY21 results, which were headed by strong 30%+ gains in underlying profits and dividends. What drove the good bottom line result?

A positive start to H2 FY21
Domino’s also reported a ‘pleasing start’ to its H2 FY21, with sales in the first six weeks of the half up some 21% on the last period last year. Given this, how are you expecting to end the full year compared to the year prior?

The effect of COVID-19 in H1 FY21 and in coming months
Domino’s stated that online sales jumped in part because of COVID-19, which had clients staying at home. What will happen to your sales mix when the pandemic eventually fades from view and office workers stop working from home?

Growth potential – new product lines
Domino’s has gradually expanded and differentiated its pizza menu over time, while it has also dabbled in chicken offerings. What other menu items could realistically be considered without hefty capital costs?

Growth potential – existing and new geographies
The Company has over time expanded from its Australasian roots, and now has a material presence in Japan and some European countries. What is underpinning sales growth in these overseas countries and what other countries are now on your radar?

The saturation point for Domino’s in its core Australian market
Domino’s is continuing to expand its Australian store network via organic growth and acquisitions. How does the Company manage concerns of existing franchisees that new stores reduce their existing client catchment areas?

Chapters
0:00-0:37 - Introduction
0:37-1:50 - Strong profit and dividend growth in H1 FY21
1:50-3:13 - A positive start to H2 FY21
3:13-4:31 - The effect of COVID-19 in H1 FY21
4:31-5:55 - New product lines
5:55-7:36 - Existing and new geographies
7:36-8:36 - The saturation point for Domino’s in its core Australian market
8:36-9:13 - Conclusion

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The opinions expressed in this video do not reflect the official position of The Capital Network and/or TCNTV and do not constitute investment advice.