We might not have been able to hit the bars, clubs and firework displays on New Year’s Eve but that didn’t stop people treating themselves to a small slice of luxury, judging by comments from Domino’s Pizza.
News that trading around the New Year period was ‘exceptional’ would suggest that people stuck indoors under lockdown got their kicks through a takeaway.
“Its full-year results are full of punchy comments about earnings growth and come with a grand strategic plan,” says AJ Bell’s Russ Mould.
“Sadly, we’ve heard all this before, and its previous strategic growth initiatives haven’t exactly gone well. The London-listed Domino’s has been pulling out of overseas territories after failing to make a success outside of the UK and Ireland, and a spat with franchisees remains unresolved.
“The latest plan is to accelerate growth, open more stores and introduce more collection points. There is only so much you can do to refresh Domino’s beyond planting more flags and finding new things to stuff inside its pizza crusts.
“Refining the existing proposition would seem a more logical move, perhaps focusing on initiatives to get customers to spend more money per order, introducing healthier menu options, and being more dynamic on pricing.
“Equally, Domino’s needs to address the threat of growing competition from non-pizza operators. The rise of food ordering apps from Just Eat and Deliveroo mean it is just as easy to order a McDonald’s or a Chinese meal as it is to shop with Domino’s.
“The new executive leadership team will want to look as if they are ambitious, but really this business needs fine-tuning rather than a turbo-charge.”