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For about €73 million, Dominos Purchases the Largest Franchise Operator in Ireland

As it looks to broaden its reach by gaining complete control of its largest franchise operator on the island of Ireland, Dominos’ UK and Irish divisions reported higher profitability and revenue.
Dominos reported revenue of £667 million (€771.8 million) in its 2023 financial results, an 11.1% rise over 2022. The company attributed this increase to system sales volumes, more store openings, and the pass-through of higher food costs.
System sales were £1.57 billion (€1.84 billion), up from the £1.46 billion (€1.71 billion) reported in 2022.

The company’s earnings after tax was £115 million, up 40.9% from the previous year. This rise was mostly attributable to the £40.6 million profit on the sale of the German subsidiary.
As part of the 2023 financial results announcement, Dominos announced that it has acquired the remaining 85% shareholding of Shorecal Limited, the largest Domino’s franchise business operating in Ireland, for approximately £62 million (€72.7 million). The company currently has 1,319 stores in the UK and Ireland. Of the 99 stores on the island, 34 are run by it. The current Irish management of Shorecal will continue in their positions.

Chief executive of Dominos, Andrew Rennie said the company has been prioritising investment in its core business to drive growth which is why it has acquired full control of Shorecal to “accelerate our Irish growth”.

“We see a significant opportunity to meaningfully increase our Irish store count and deliver long-term, sustainable returns,” Mr Rennie said.

According to Mr. Rennie, the business is expanding quickly and plans to build 1,600 locations in the UK and Ireland by 2028. By then, it hopes to have generated £2 billion (€2.34 billion) in revenue.
It anticipates generating sales of £2.5 billion (€2.93 billion) by 2033.
The company cut its cost base last year, which it hopes will help to somewhat mitigate the overall effects of inflation.

According to the corporation, there will be some deflation in food costs this year, which will be passed on to its franchise partners.
This year, it anticipates delivering results in line with forecasts.
In 2024, Dominos plans to open more than 70 new locations in the UK and Ireland.

“We are rigorously focused on accelerating organic growth and pursuing value enhancing inorganic growth opportunities, to build a larger and more cash generative business, at pace but with discipline. We look forward to providing an update on these opportunities later in the year,” Mr Rennie said.