Dominos acquires its largest franchise operator in Ireland for nearly €73m 

Dominos has agreed to acquire the remaining 85% shareholding of Shorecal Limited which operates 34 of the 99 Dominos locations across the island of Ireland. 

Dominos’ UK and Irish operations reported an increase in profits and revenue as it seeks to expand its reach further by acquiring full control of its largest franchise operator on the island of Ireland.

In its financial results for 2023, Dominos posted revenue of £667m (€771.8m) - up 11.1% compared to 2022 - driven by an increase in system sales volumes, an increased number of store openings, as well as the pass through of increased food costs.

System sales stood at £1.57bn (€1.84bn), an increase from the £1.46bn (€1.71bn) posted in 2022. The company’s profit after tax stood at £115m - an increase of 40.9% compared to the year prior due in large part to the disposal of the German associate, generating a profit of £40.6m.

The company currently has 1,319 stores in the UK and Ireland,

As part of the 2023 financial results announcement, Dominos announced that it has acquired the remaining 85% shareholding of Shorecal Limited, which is the largest Domino’s franchise business operating in Ireland, for approximately £62m (€72.7m). It runs 34 of the 99 stores across the island.

Shorecal’s existing Irish management will remain in their roles.

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.

Mr Rennie said the company is accelerating its growth and expects to have 1,600 UK and Ireland stores open by 2028 with a target of reaching £2bn (€2.34bn) in sales by that time.

By 2033, it expects to be delivering £2.5bn (€2.93bn) in sales.

Last year, the company reduced its cost base which it expects to partially offset the overall impact of inflation.

The company said it expects some food cost deflation across this year which will be passed through its franchise partners.

It expects to deliver earnings this year in line with expectations.

Dominos expects to open in excess of 70 new stores across the UK and Ireland during 2024. 

“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.