2024-02-20 20:41:04 ET
Domino's Pizza Enterprises Limited (DPZUF)
Q2 2024 Earnings Conference Call
February 20, 2024 06:30 PM ET
Company Participants
Nathan Scholz - Chief Communications & Investor Relations Officer
Don Meij - Group Chief Executive Officer & Managing Director
Richard Coney - Group Chief Financial Officer
Josh Kilimnik - Chief Executive Officer, APAC
Andre Wolde - Chief Executive Officer, Europe
Michael Gillespie - Chief Commercial Officer
Conference Call Participants
Presentation
Nathan Scholz
Good morning. I can see our attendees have now been able to join our Zoom call. My name is Nathan Scholz, I'm the Chief Communications and Investor Relations Officer for Domino's Pizza Enterprises. I will welcome you this morning to our Half Year Results Presentation.
Joining you today is our Group CEO and Managing Director, Mr. Don Meij; our Group Chief Financial Officer, Richard Coney; Andre Ten Wold, our Europe CEO; Josh Kilimnik, our Asia CEO. And introducing you for the first time, Michael Gillespie, our Chief Commercial Officer.
And with that, I will hand you over to our Group CEO and Managing Director, Mr. Don Meij. Now, also reminded that today, we will, of course, have our Q&A session. I can see people are already populating their questions in the Q&A chat. For those people, for compliance reasons, who cannot enter into the Q&A, please just feel free to send me an e-mail. We'll attempt to get to as many of those questions as possible.
Now, with that, I'll hand over to Don. Thanks very much.
Don Meij
Thank you, Nathan and welcome everybody, to our half year market update. Today, I intend to, with the leadership team, tend to walk through three core areas. Firstly, in the first half, where did we make missteps and what were they? In parts of the business, what did we get right? And then how are we going to apply what's working to the rest of the business?
If I start with this first slide, which is Slide number 2, what hasn't changed is fundamentally, we're still very mission-focused in that we want to be the dominant sustainable delivery QSR in every market by 2030. And that guides us and we'll refer to the references of that throughout our presentation.
We also want to continue to -- once we do get a business unit economics up with strong sales and franchise profitability growth, we still want to make sure that we're fortressing markets with being a competitive advantage to get closer to the customer with hotter and fresher pizza.
And fundamentally, since the early 1990s, we've been a business driven with a high-volume mentality, and that is through scale and leverage with some of the benefits of fast-food businesses is that we're able to make sure that we can pass those savings through and be better value than most of our competitors.
If you come with me now on to Slide 3, we talk a lot about the value equation of Domino's and the value equation at Domino's is product, service, and image divided by price to equal value.
In the last two presentations we've given to the market, we talked a lot about price because in many cases, we weren't getting the price right. But at Domino's, we want to talk a lot today about the whole value equation. What do you get for that price because it's what's driving our business or where we're making missteps in some of the underperforming units.
So, we talked about at the full year that the way that our business rebuilds is it always starts with the customer. When customers are excited that they're paying the fair price for our product, that our franchise partners then benefit from the better margins and the sales growth, and then ultimately, our shareholders also succeed. So, it's the whole ecosystem, starting with the customer that we're focused on everybody getting a better slice.
When we think about what happened in the first half, the missteps happened when we didn't get that value equation right. So, what have we been focusing on in the first half? The first thing that we talked about at the full year and leading into the full year was that after two decades of international growth outside the Australian market, we've built up a number of business units and that started to have their own independent leadership teams with lots of disparate systems from businesses that we'd acquired before, and we weren't getting the proper leverage of our scale....
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Domino's Pizza Enterprises Limited (DPZUF) Q2 2024 Earnings Call Transcript