Strategic and operational progress delivers Underlying EPS growth

New Profit and Growth Framework with franchise partners designed to drive growth

Positive LFLs and orders at the start of FY25

FY23 was a 53-week reporting period to 31 December 2023.

For the purposes of comparability, growth rates in this statement are given on a 52-week basis.

Commenting on the results, Andrew Rennie, CEO said:

“Today’s results show the benefits of our long-term strategy. We’ve capitalised on our competitive strengths, agreed a new five year framework with our franchise partners and opened 54 stores. Our trading momentum accelerated as the year progressed, our delivery channel returned to growth and we delivered strong underlying earnings growth. This has required relentless focus by our colleagues and franchise partners, and I thank them for their brilliant work.

In 2024 we made disciplined investments in new growth opportunities, Shorecal in Ireland and DP Poland, partly financed through recycling store disposal proceeds. Today we have announced an additional investment in our Northern Irish JV, further enhancing our ability to drive growth. We continue to explore targeted, accretive opportunities, which would be financed within our existing balance sheet capacity.

Since 2021 we have announced nearly £500m of shareholder returns, have increased dividends again today and remain committed to returning excess capital in the future. 

2025 has started positively in an uncertain market. With a good store opening pipeline, I am confident that with the quality of our teams and franchise partners, our unrivalled scale, resilient business model and capabilities, Domino’s is well placed to thrive in 2025 and beyond.”

FY24 financial highlights – strong Underlying² profit growth:

• Like-for-like system sales ^1,3,4 up 0.7%, with improving performance in every quarter, Q4 24 +3.0%
• Group revenue was broadly stable reflecting the expected decrease in supply chain revenue being nearly offset by revenue from Shorecal (acquired in H1 24)
• Underlying² EBITDA up 6.4%, driven by Shorecal and lower technology platform costs
• Statutory profit after tax down 21.6% as FY23 benefitted from sale of German associate
• Underlying² EPS up 13.3% further benefiting from share buybacks
• Strong balance sheet with Net Debt⁵ of £265.5m: Net Debt to EBITDA 1.93x within our target range, down from 2.16x at H1 24
• Proposed final dividend: 7.5p per share. FY24 total dividend of 11.0p per share, up 4.8% vs. FY23
• FY24 Capital Allocation: £82.5m deployed in capex and accretive investments (Shorecal, DP Poland) and £67.9m returned to investors through dividends and buybacks funded by £84.7m free cash flow, £33.0m from London corporate store disposal and a £32.7m increase in Net Debt⁵
• Cumulative announced returns via dividends and share buybacks of c.£500m since March 2021

FY24 operational highlights – improving order count momentum:

• Total orders 71.7m (+1.7%); Delivery: +2.4% (with Q4 24: +7.9%); Collection: +0.5%
• Average delivery time: 24.5 mins (FY23: 25.0) reflecting intense focus by our franchise partners
• New store openings: 54 new stores across 21 different franchise partners, with record Ireland store openings
• Digital progress: c.9.5m app customers, app now 76.3% of online orders (+2.7ppts)
• Average franchisee store EBITDA of £168k, +6.6% despite 10% minimum wage increase in April

FY24 strategic objectives – significant progress:

• Five year Profitability and Growth Framework (“PGF”) agreed with franchise partners to capitalise on significant long-term growth opportunity
• Loyalty programme trial with c.630k customers completed and performing ahead of expectations, now moving to second phase with c.3m customers and a targeted launch in 2026
• Uber Eats roll out completed: delivered incremental customers and orders
• Significant portfolio enhancement with Shorecal acquisition, contributed £5.5m to Underlying EBITDA
• Disposal of London corporate store estate for £34.8m
• Building engines of future growth with investment in DP Poland. Continuing to assess opportunities for a second brand, where we can leverage the scale and capabilities of the Group and deliver attractive returns to shareholders
• Focusing on opportunities that are in-line with our guardrails. Current pipeline is of a size that would be financed within our existing balance sheet capacity
• Purchase of additional 24% for £25.6m in Victa DP Ltd (£7.2m equity, £18.4m debt funding), our joint venture in Northern Ireland, bringing DPG’s shareholding to 70%. Consistent with our strategy of unlocking growth in Northern Ireland and Republic of Ireland following the acquisition of Shorecal in 2024 and the investment in the Ireland supply chain centre

Current trading and outlook

We made strong strategic progress during 2024, with trading momentum accelerating as the year progressed. Although the UK economic environment remains uncertain, in the first ten weeks of the year, our growth has been positive with total system sales +2.4%, total orders +0.7% and like-for-like sales +0.7%.

2024 was the year when we returned delivery to growth, and in the current environment we see an opportunity to drive further growth in collection orders in 2025 through value-based marketing campaigns. Our brand and market positioning continues to strengthen and we have a number of initiatives, from the next phase of our loyalty trial to exciting menu innovation, which will improve our customer proposition and drive growth in the system. With the PGF in place, we look forward to opening in excess of 50 new stores in 2025.

We expect FY25 Underlying EBITDA to be in line with current market expectations,⁶ excluding the positive impact of the Victa investment announced today.

Our technical guidance for FY25 is as follows:

• Additional investment in Victa JV expected to contribute c.£3m to Underlying EBITDA
• Underlying depreciation & amortisation of between £20m to £23m
• Underlying interest (excluding foreign exchange movements) in the range of £17m to £19m
• Estimated underlying effective tax rate of c.24.5% for the full year
• Capital investment of c.£25m
• Net debt at year-end between £260m and £280m

Contacts

For Domino’s Pizza Group plc:
Investor Relations

Will MacLaren, Director of Investor Relations +44 (0) 7443 192 118

Media:

Tim Danaher, Emilia Smith – Brunswick +44 (0) 207 404 5959

Results meeting

A results meeting and Q&A for investors and analysts will be held at 09:30 GMT today. The webcast and presentation can be accessed here and will also be available on the Results, Reports and Presentations page of our corporate website.

In addition, we will replay the webcast and Q&A at 16:00 GMT today for North American based investors not able to join the live presentation at 09:30 GMT this morning. Please click here to register.

Financial calendar

Domino’s Pizza Group will release a Q1 25 trading statement on 24 April 2025

About Domino’s Pizza Group

Domino's Pizza Group plc is the UK’s leading pizza brand and a major player in the Irish market. We hold the master franchise agreement to own, operate and franchise Domino’s stores in the UK and the Republic of Ireland. As of 29 December 2024, we had 1,372 stores in the UK and Ireland. We also have a 12.1% shareholding in Domino’s Pizza Poland.

Cautionary statement

Certain statements made in this announcement are forward-looking statements. Such statements are based on current expectations and assumptions and are subject to a number of risks and uncertainties that could cause actual events or results to differ materially from any expected future events or results expressed or implied in these forward-looking statements. Persons receiving this announcement should not place undue reliance on forward-looking statements. Unless otherwise required by applicable law, regulation or accounting standard, Domino’s does not undertake to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.

Notes

¹ System sales represent the sum of all sales made by both franchised and corporate stores to consumers in UK & Ireland. These are excluding VAT and are unaudited.

² Underlying is defined as statutory performance excluding items classified as non-underlying which includes significant irregular costs, significant impairments of assets and other costs associated with acquisitions and disposals as set out in note 4 to the financial information.

For FY24, underlying excludes profit on the disposal of the London corporate stores of £21.4m, £5.0m income relating to historical share-based payment schemes, £5.6m costs relating to the Shorecal acquisition and £3.2m in terminated acquisition costs. These resulted in a non-underlying tax charge of £7.7m.

For FY23, Underlying excludes the £40.6m profit on disposal of the German associate as well as the £1.3m tax charge relating to historical share-based compensation arrangements.

³ Like-for-like (excluding splits) system sales performance is calculated for UK & Ireland against a comparable 52-week period in the prior period for mature stores which were not in territories split in the current period or comparable period. Mature stores are defined as those opened prior to 25 December 2022.

⁴ FY23 was a 53-week year, so the comparator weeks in FY24 are different. The comparable basis adjusts for this difference, by comparing weeks 1-52 in FY24 with weeks 2-53 in FY23.

⁵ Net Debt is defined as the bank revolving facilities, private placement facilities, cash and cash equivalents and other loans, including balances held in disposal groups held for sale.

⁶ Current mean of FY25 Underlying EBITDA expectations is £146.4m with a range of £143.0m - £148.2m. Based on 9 analysts’ forecasts.