Record low cheese prices and the popularity of its mobile app helped Domino’s Pizza serve up a near 18% rise in profits last year.
The UK’s largest pizza delivery chain said pre-tax profits rose 17.8% to £73.2m last year, when the firm celebrated its 30th anniversary. Domino’s said it benefited from the record low cheese price as well as lower wheat and fuel costs after the collapse in global oil and commodity prices.
The chain’s digital investments also paid off, with like-for-like sales growth for the group picking up to 11.7% from 11.3% in 2014.
The company sells most of its pizzas through its mobile app, which accounts for nearly half of online sales. In the UK, more than three-quarters of sales are made online. App-based orders jumped by 41% last year, with 11.5 million people having downloaded the app on their smartphones or tablets.
In the UK, Domino’s sold 8.1% more pizzas last year; side orders were 12.1% ahead, desserts rose 14.8% and drinks 32.7%. The firm introduced the chicken tikka pizza and reintroduced the hot dog stuffed crust. It slowed oven speeds to increase cooking time and the quality of its pizzas.
The chief executive, David Wild, said despite the volatile macroeconomic environment 2015 was a “terrific year” for Domino’s, particularly in the UK. “Digital continues to be at the heart of our business, driving more customers and higher frequency of orders … We have made an encouraging start to 2016, although we are conscious of increasingly tough comparatives through the rest of the year.”
The company has 869 stores in the UK after opening 61 last year. It formed a joint venture in Germany to buy the country’s largest delivery chain, Joey’s Pizza, and will no longer operate directly in the country.
It raised its dividend for 2015 by 18.6% to 20.75p a share.
