Domino's Pizza share price soars after revealing record profit

 
Joe Hall
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Domino's Pizza. (Source: Getty)

The figures

Shares in Domino's Pizza soared by more than seven per cent in early morning trading after the fast food company announced a 15.1 per cent rise in underlying profit before tax to an extra-large £54.8m for the full year ended 28 December 2014.

The record profit was delivered by record sales of £766.6m - a 14.6 per cent rise from last year's figure of £688.8m, and strong performance in the UK and Republic of Ireland markets.

Sales rose a chunky 30.2 per cent to £440.4m in the UK and Republic of Ireland, where online transactions accounted for 69.4 per cent. In total the company served 75m pizzas in 2014.

Total revenue grew from £266.8m to £294.4m - £279.1m of which came from the UK and Republic of Ireland.

Why it's interesting

Domino's appears more than comfortable with consumers' towards mobile commerce, despite a security breach last year. In the UK and Ireland, over 44 per cent of orders came through a mobile device. The company has released free iPhone, iPad and Android apps from which customers can place an order.

In 2014 the company "enhanced" its mobile app, launched a new website and diverted marketing funds into digital media. Domino's said customers who shop online now have a higher rate of conversion, spend more per visit and visit more frequently.

In total, e-commerce represented 70.6 per cent of the group's total delivered orders.

What Domino's said

High quality information technology is key to running our business successfully, both in providing efficient systems for franchisees in the stores and e- and m- commerce, which enables customers to order our pizzas easily. We have achieved significant progress in both areas in 2015, with an emphasis on accelerating our growth in online ordering. Our focus on this strategy has led to record sales, profits and cash generation in 2014. In the UK in 2014, 53.3 per cent of total orders were made by customers online, up from 47.2 per cent in 2013.

In short

Domino's is a fast food company for the mobile age, and its latest results have the figures to prove it.

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