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

Executive summary

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

• Total system sales increased 3.0% to £374.8m, with like-for-like system sales up 0.7% on a comparable basis, driven by order count growth rather than price increases.

• Positive trading momentum continued into Q4, with total orders up 5.8% in the first five weeks.

Financial highlights

• Franchisee profitability increased by €5,000–8,000 by year-end, even after absorbing a large National Living Wage increase.

• Q3 2024 system sales: £374.8m, up 3.0% year-over-year; like-for-like system sales growth (ex. VAT, ex. splits): 0.7% comparable, 1.4% reported.

• Headline prices rose 2% year-over-year, but most customers benefit from promotional offers, resulting in lower average ticket prices.

• Focus on volume-driven growth, with more customers ordering more frequently, offsetting lower per-ticket spend.

Outlook and guidance

• Full-year expectations remain unchanged, with FY24 Underlying EBITDA expected in line with current market expectations (£142.4m–£144.7m) and confidence in achieving the 1,400-store milestone in 2025.

• Store opening guidance for FY24 revised to 50–60 new stores due to a slower planning environment; delays attributed to landlord and utility issues, but pipeline for next year and 2026 is strong.

• Anticipates some price increases in 2025 due to rising cheese and labor costs, but plans to balance this with value offers and operational levers.

• Expects collection orders to return to growth by H2 next year, with both delivery and collection targeted for positive growth.