Investors shrug off Domino’s sales slowdown
A HOT European summer may have put a slight dampener on Domino's pizza sales, but investors seem undeterred following the company's annual general meeting in Brisbane yesterday.
Shares in the pizza giant lifted slightly, up 2.05 per cent to $55.68 following the company announcing its trading update for the first 17 weeks of the financial year.
Group same store sales were up 2.91 per cent, compared with a lift of 5.03 per cent last year.
Domino's had flagged guidance of group same store sales of between 3 per cent and 6 per cent for the full financial year, a target which chief executive Don Meij said remained on track.
"The good news for us is that it's at the beginning of the year, which is the quietest time for us," he said.
"So from an earnings point of view, it hasn't affected the major (sales) window."
This summer will see the company launch its biggest ever menu shake-up in Australia and New Zealand, with 30 new recipes including new sides and desserts.
Mr Meij said some elements had been in development for more than 12 months, and would be rolled out intermittently over the summer period.
Also launching will be the company's largest ever pizza, a 30-inch known as the Big One, after a successful trial.
Domino's also unveiled its new augmented reality capability within its existing app.
Following the resignation of director Paul Cave the company announced it was searching for a replacement and potentially an additional non-executive director.
Shareholders voted in favour of an increase of the remuneration pool for directors from $1 million to $1.4 million.