WASHINGTON (dpa-AFX) - Domino's Pizza Group Plc. (DOM.L) said that it has reached resolution with its franchisees to unlock the significant latent potential of the Domino's system and accelerate both near-term and long-term growth. The Resolution will run for an initial period of three years from 3 January 2022.
The Resolution was reached between the Domino's Franchisee Association and Domino's Pizza Group, and has received overwhelming support with franchisees representing over 99% of UK stores voting in favour of the Resolution.
The company has committed to one-time capital investment of about 20 million pounds, spread over three years, in digital acceleration, personalization, ecommerce app development and in-store innovation to enhance the customer experience and drive top-line growth.
The franchisees commit to an enhanced schedule of new store openings, equating to at least 45 new stores to be opened per annum over the next three years, significantly ahead of levels achieved in previous years.
The franchisees commit to participate in new national promotional deals focused on both delivery and collection, in contrast to a lack of national advertising and promotions in recent years.
Domino's Pizza Group expects results for fiscal year 2021 to be in line with expectations.
In fiscal year 2022, the company expects an acceleration in system sales growth ,excluding the benefit of the reduced rate of VAT, largely driven by increased store openings and an acceleration in LFL growth due to the operating and capital investments associated with the Resolution.
The company expects fiscal year 2022 underlying EBITDA and earnings per share to be in line with current market expectations.
The company increased its medium-term expectations and now expects to achieve at least the upper end of the previously announced targets of 1.6 billion pounds - 1.9 billion pounds of system sales and exceed the medium-term target of 200 new stores.
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