Domino's Pizza Group (DOM) Q3 2024 TU earnings summary

Executive summary

• Q3 2024 saw total orders rise 3.5% year-over-year, with delivery orders up 6.6% and collection orders down 1.5% but still 14% above 2019 levels, reflecting strong business momentum and a focus on customer service and value.

• Total system sales increased 3.0% to £374.8m, with like-for-like system sales returning to growth at 0.7% on a comparable basis.

• Positive trading momentum continued into Q4, with total orders up 5.8% in the first five weeks and full-year expectations unchanged.

• Franchisee profitability is up year-over-year, even after absorbing a significant National Living Wage increase.

Financial highlights

• Q3 2024 system sales: £374.8m, up 3.0% year-over-year, with like-for-like system sales growth at 0.7% comparable and 1.4% reported.

• Delivery orders in Q3 2024 up 6.6% year-over-year; collection orders down 1.5%, partly due to a shift to delivery.

• H1 2024 system sales growth was 0.2%, showing significant acceleration in Q3.

• Like-for-like sales up 0.7%, driven by order count growth rather than price increases.

Outlook and guidance

• FY24 Underlying EBITDA expected in line with current market expectations (£142.4m–£144.7m), with full-year expectations unchanged.

• Store opening guidance for FY24 revised to 50–60 new stores due to a slower planning environment; on track for 1,400th store in FY25.

• Positive trading momentum in Q4, with 5.8% growth in the first five weeks.

• Anticipates some price increases next year but plans to balance with volume growth and service quality.