So much to doooooooooooooo

 

How I'm feeling at the moment:

Domino's Pizza Enterprises Annual Reports + KCQ's

 

The three most recent Annual Reports for Domino’s Pizza Enterprises can be found at the following links:

2012
http://www.dominos.com.au/media/15948/2012_dpe_annual_report.pdf

2013
http://www.dominos.com.au/media/68298/dpe_2013_annual_report_web.pdf

2014
http://www.dominos.com.au/media/119859/annual-report-2014.pdf

Key Concepts and Questions after reading the latest Annual Report.

The latest Annual Report from Domino’s Pizza Enterprises is for the year ended 29^th of June 2014, hence their Annual Reports follow the financial year.
When starting to read the latest Annual Report, I realised that it is 96 pages long – that is my first concern, for sure. However, when looking at it like that, it is obvious that the proportion of the company’s operations is huge, if not overwhelming. I am certain though, that when a person who actually knows what they’re doing is looking at it - for example, an investor or a shareholder, there is evidently enough information for them – both in numbers and words.

The Annual Report starts with Group Highlights, and even though it contains a lot of terms I do not understand such as EBITDA, EBIT, NPBT, NPAT, it also contains some things I do understand, for example Network Sales, Revenue Growth and Earnings Per Share, that are increasing year by year. According to just the Group Highlights, it seems that the company is doing pretty well with growing numbers yearly. However, it does say Group ‘Highlights’ which is most likely supposed to ‘highlight’ the success of the company, so there’s definitely more information to be discovered, in order to determine if the company is doing as well as it seems when having a first look.

The next section I see is Corporate Governance Statement, which I have no idea what that is about. When reading on though, I understand that it is a rather important matter both, to the company and the Board of Directors. It is set as a table describing various ASX Principles and statements as to the Company’s compliance or otherwise with them. Statement is separated into 8 categories of values:
1) Lay solid foundations for management and oversight
2) Structure the Board to add value
3) Promote ethical and responsible decision-making
4) Safeguard integrity in financial reporting
5) Make timely and balanced disclosure
6) Respect the rights of shareholders
7) Recognise and manage risk
8) Remunerate fairly and responsibly.

The Board of Directors, or just Board, as seen in the Corporate Governance Statement, is structured to add value. At the date of the latest report, the Board contains six directors who are responsible for guiding and monitoring Domino’s Pizza Enterprises Limited on behalf of shareholders. They seek to identify the expectations of shareholders, as well as other regulatory obligations. They are also accountable for identifying areas of significant risk and ensuring arrangements are in place to adequately manage the risks. Another responsibility of the Board is directing management to optimise the Company’s performance and increase shareholder wealth. To assist them in the execution of all of the responsibilities, The Board has established two committees: Nomination and Remuneration Committee and Audit Committee. The committees are able to focus on a particular responsibility and provide informed feedback on the board. It is evident that the shareholders of Domino’s Pizza Enterprises are well taken care of, with a Board containing 6 directors as well as two committees looking after the shareholders and ensuring that their wealth is only increased – a well-built strategy ensuring the wellbeing of the shareholders.

When looking at Consolidated Entity in the Director’s report, it provides a comprehensive overview of what has happened in the company both in Australia as well as overseas throughout the last year. One of the challenges that the company is facing is the increased tax rate, which was primarily driven by the higher statutory tax rate arising on the Japan operations. Therefore, even though usually globalisation and expansion of a company comes with many benefits, it also has its disadvantages.

Nevertheless, Domino’s Pizza Enterprises seem to be doing well with cash flows from operating activities having increased by $57.5 million from the previous year, supported by a $21.9 million improvement in working capital in Japan. There is also an increase in Plant & Equipment and Goodwill compared to the last year as a result of Domino’s Pizza Japan acquisition and expenditure on new and refurbished stores. Revenue has increased due to same store sales of 6.3% in Australia and New Zealand, 2.7% in Europe and 10.7% in Japan achieved for the year, mainly due to new store rollouts in Australia and New Zealand and increased television advertising and store relocations to higher profile locations in Japan. The Consolidated Entity set a new record of 125 organic new store openings throughout the year, having a total of 612 stores in Australia and New Zealand, 401 stores in Europe and 320 stores in Japan – all together 1333 stores!

Despite the fact that people will always like pizza, it is still important for a company to strive to higher goals and provide the best for their customers. All of these increasing numbers are a result of different promotional strategies that Domino’s around the world have adopted - for example Peri Peri range and Super Delivery Weekends in Australia, Speed Rabbit Pizza in Europe and television advertising campaigns in Japan. Digital development and technology also continues to be a key focus for the business, with Australia and New Zealand releasing the Offers App, the Pizza Chef Tool and integrating PayPal as a payment method into the online ordering website. European stores have included “Pizza by the slice” concept in the new store portfolio, as well as improved online ordering systems, which have proved to be popular. In Europe they also adopted many management operational and marketing changes that showed results during the second half of 2014. Consolidated Entity in Europe is also partially assisted by a stronger Euro, which, for now is an asset for the company. However, when the value of the currency drops, it might be a challenge that they would have to face in the future. Domino’s Japan introduced a new internal franchisee financing program for high performing corporate store managers. Since its introduction in December 2013, Domino’s Pizza in Japan had financed 11 store managers into their own franchise stores.

Even though all of the strategies they have successfully executed throughout the year to increase their Revenue, Domino Pizza Enterprises in Australia and New Zealand are planning future developments, continuing to increase and leverage their digital capabilities and maximising online sales. They are also targeting to achieve a new record of new organic store openings across metro and regional markets with the expectation of customer counts growing. In Europe they continue to focus on delivering a number of new initiatives that have put in place to improve operational efficiencies, and they are also expanding the area of countries to use online ordering systems. A new record of organic new store growth is similarly targeted in the region for next year, even though the company has its biggest pipeline of new stores for the region. In Japan they are focusing on the continuation of new store rollouts, including the expansion of the recently created franchisee financing program, as well as increasing their presence across a range of immature markets. They are also continuing moving their stores to higher profile sites to increase the growth in carry out sales.  

Questions still remaining unanswered:

1) What do EBITDA, EBIT, NPBT, NPAT stand for?
2) What’s Hedging Reserve?
3) When the company is spreading to more countries, how much will the tax increase affect the company? How would they face the challenge?
4) If a stronger currency such as Euro is assisting the consolidated entity in Europe, do weaker currency such as Yen in Japan weaken it?

More about Domino's Pizza Enterprises

This post is not only to get whoever is reading it hungry. Or maybe it is, a little bit. At least now you feel as I do when researching and collecting information about this company – ALWAYS HUNGRY!

Mmmmmmm Piiiiizzzaaaaa…

ANYWAYS.

Browsing through Domino’s website I found some more information and cool links I thought are worth sharing.

I found out that the CEO of Domino’s Pizza Enterprises – Don Meij is somewhat different from other CEO’s of big companies. Starting as a pizza delivery driver and working his way up, it seems as his approach of being a CEO isn’t all about being in charge, but rather being involved. Instead of hiring someone else to do it, he appears in multiple advertisements and video clips himself, talking directly to the viewer about ‘bringing the best’ to customers as well as the values and future goals of the company.

A whole section of their webpage is committed on how they’re working towards improving their production and how to provide healthier products for customers.

 

They include the customers in every change they make in the menu and give customers a chance to share their opinions and thoughts on improving the quality of their products: http://www.dominos.com.au/inside-dominos/suggestion

I also like the 'Live Store Ratings' they have on their webpage, which provides the customer an opportunity to give feedback about the product received and their “Domino’s experience” as well as look at reviews others have given to Domino’s franchises all over Australia.
Live Store Ratings: http://www.dominos.com.au/corporate/store-ratings

Generally when I used to go to Domino’s webpage, all I actually looked at was the menu and how I can get the food delivered to my house as soon as possible. But now, when actually looking INTO the website, there’s so much more! There’s so much information about the company itself and the history of it and leaders of the company and their goals and values and even annual reports! I didn’t even have a clue that I can go to a company’s website and snoop around on numbers and profits!

I will be never again looking at Domino’s website as I used to before..

 

 

 

 

Source: http://www.dominos.com.au/

 

About Domino's Pizza Enterprises

 

The company I got assigned to work with is Domino’s Pizza Enterprises, which is the largest pizza chain in Australia beating other pizza chains with both – network store numbers as well as sales. It is also the largest franchisee for the Domino's Pizza brand in the world. The Domino's brand is owned by Domino's Pizza Inc, a listed US company.
Domino’s Pizza Enterprises is not only represented in Australia, but all over the world, including countries such as New Zealand, France, Belgium, the Netherlands and Japan, with more than 1400 stores and approximately 26 000 employees.
Domino’s visions are to be “Number 1 in Pizza” and “Number 1 in People”, with a mission to “Sell more Pizza and have more fun”.

The values they listed on their website are:

•Treat people as you'd like to be treated.

•Produce the best for less.

•Measure, manage and share what's important.

•Think big and grow.

•Incentivise what you want to change.

•Set the bar high, train, never stop learning.

•Promote from within.

•We are not ordinary, we are exceptional.

Besides being the number one pizza delivery company, Domino’s also likes to give back to the community – they believe in supporting the local community and organisations that their customers care about. Domino’s is also there in times of natural disasters, providing food for communities in need. Over the past few years, Domino’s has offered help to the victims of natural disasters such as Cyclone Larry, the Brisbane Storms in 2008, the Victoria Bushfires in 2009, the Queensland floods, Cyclone Yasi, the Christchurch earthquake in 2011 and the Tasmanian Bushfires in 2013.
Every day of the year, they are proud to support communities across Australia and New Zealand. Over the years Domino’s has donated over 20 000 pizzas and more than $600 000 back into Australian and New Zealand local communities through doughraisers, pizza and monetary donations, sponsorships to local community groups, sporting clubs, charity organisations, schools and events; and The Partners Foundation – founded to assist team members in time of special need or tragedy.

Domino’s Pizza also understands the importance of successful relationships with their business partners. To ensure customer satisfaction and to provide the customers with the freshest products made of high-quality ingredients, the list of Domino’s business partners include companies such as Coca Cola, Visy, Comgroup, Primo, Ingham, Leprino Foods and Mauri anz.

If you wish to learn more about Domino’s Enterprises, click HERE - the Domino's  Pizza Enterprises Fact Sheet. It contains more detailed information, history and all the facts about the company - definitely worth the visit.

 

 

 
 
Source: http://www.dominos.com.au

Hello hello hellooo

Hello all accounting and non-accounting people reading my blog for whatever reason!
My name is Elina and this is the blog created for my 1^st year accounting course – Using Accounting For Decision Making.
During Term 1, 2015 I plan to start writing different posts in here regarding my accounting experience - my lecture notes, my assignments, and just thoughts that accompany me throughout this course.
I am very-very new at this – both, accounting AND blogging, but bare with me and hopefully we’ll work it out at least by the end of the term (ha! See what I did there? WORK it out?).
As you can see I’m not really funny. Hopefully my blog will be a bit better than my sense of humour.


- Elina