Domino’s Introduces A Dating App To Improve Its Sales Growth

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The Fast food giant Domino’s Pizza Enterprises Limited  (ASX: DMP) says that as a result of a long, hot summer in Europe there is an upper limit set on its trading. However, in order to improve the sales growth, the company introduced new menu items as well as took a new initiative to introduce pizza-based dating app.

The ASX-listed group, Domino’s operates in the region across Australia, New Zealand, Japan and continental Europe. Within the period of first 17 weeks the sales of the group was 2.91% in FY2018. This data was reported on Wednesday 07 November 2018.  

The chief executive officer of Domino’s stated that sales report obtained is the lowest as per the guidance report driven in the month of August for the full year sales of 3% to 6% which also includes the “extended, hot European summer”. This statement was addressed by the chief executive officer of the company Mr. Don Meij in the annual general meeting.

The total sales increased in the European regions like-for-like basis. However, the effect seen was a short term effect as compared to the other Domino’s European markets. As per the guidance report another 225 domino’s outlet needs to open before it makes announcement of its half yearly results.

The target to open new stores will start from December to June in FY19. The share price fell by 2% on 7 November 2018, 5 minutes before the closing of the ASX. Today also the share price has gone down by 10.704% by the close of the day.

The same store sales growth in Japan was showing a pleasant result of the 5% which was 0.9 percent growth across 2018, Mr. Meij said.

As per Domino’s, for the remaining year, the sales across various stores in Australia, will be taken care by 30 new menu items introduced at its stores. Apart from that the company will launch the loyalty scheme and new pizzas in Europe.

The CEO also stated that they are soon going to launch a dating app in the Netherlands. The concept of this dating app is that they will connect you to the other pizza lovers and go for a date.

Along with the meal, Domino’s will provide the conversation starters.

The performance of the company remained exceptionally well throughout its journey. The performance remained 1854.65%. The 1 year, 5 years and 10 years performance of the company is 15.83%, 251.07% and 1876.92%. For the year ended 2018, the company made a net profit of $121.693 million. The total asset of the company is $1,302.411 million. The total liabilities of the company is $994.747 million. This indicates that the company is able to clear its long term obligations. The current asset of the company is $229.599 million and total current liabilities of the company is $201.045 million. This indicates that could would be able to manage its short term obligations. The total shareholders equity is worth $307.664 million. The net cash generated through the operating activities is worth $185.444 million. The net cash used in investing activities is $153.971 million. The net cash used in financing activities is worth $8.147 million. The cash and cash equivalent at the end of the year is $75.996 million.

The share price of the company by the end of the day was A$49.72 with market capitalization of A$4.76 billion and PE ratio 39.94x.


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