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London-listed Domino’s Pizza Group has reached a new five-year framework with its franchise partners to capitalise on “its significant long-term growth opportunity”.
The company said it underpinned confidence in its targets to reach in excess of 1,600 stores and delivering £2bn of sales by 2028 and 2,000 stores with sales of £2.5bn by 2033.
The new framework will transition the existing memorandum of uderstanding (MoU) to a new ‘Profitability and Growth Framework’ (PGF).
The PGF will commence on 3 January 2025 following the conclusion of the existing MoU on 2 January 2025.
Under the existing MoU, new store openings have accelerated, national value campaigns delivered increased orders, and there had been more innovation, the group said.
CEO Andrew Rennie said: “This new framework is a vital step in driving the future growth of both DPG and our franchise partners. We’ve shown since 2021 that when we are aligned with our franchisees, we can achieve so much together, and this framework will take our partnership to the next level.
“The framework is good news for all our stakeholders. Having a five-year framework in place provides a strong platform for the long-term, sustainable growth of the brand, and will help us build a larger and more cash-generative business which will deliver stronger returns.
“It also means we will be well placed to address the headwinds all consumer-facing businesses will inevitably face in 2025 and will ensure we are in a strong position to thrive in the years that follow.”
Domino’s is currently trading in line with expectations.
In the first nine week of the fourth quarter, total orders are up 5.3% and like-for-like sales rose 2.7%.
The group said the recent Labour budget would cost it £3m a year from FY25.
Morning update
MicroSalt, which makes salt with 50% less sodium, has secured a supply agreement and initial order with Hippie Snacks, a Canadian company focusing on minimally processed, clean label food products.
CEO Rick Guiney said: “We are very excited about the partnership with Hippie Snacks. They are a well-regarded, widely distributed family of products that has a mission that resonates with ours - to provide healthier food for everyone.”
This week in the City
It’s looking like a busy week as the festive season moves into full swing.
The latest supermarket data is published this week as Kantar puts out market share data tomorrow and Nielsen releases grocery sales figures on Wednesday.
Tomorrow also brings interims from Naked Wines and finals from Poundland owner Pepco.
British American Tobacco published its full-year pre-close trading update on Wednesday.
The closely watched GfK consumer confidence index is out first thing Friday morning.
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