Domino’s Pizza purchases ‘Pizza Company’ in Belgium

Australian owned and operated pizza maker Domino’s Pizza Enterprises Limited (DMP) today announced it has entered into a Memorandum of Understanding to purchase Pizza Company, a pizza chain which operates 15 stores in Belgium, doubling the size of its network in the European country.

 

Domino’s Pizza CEO Don Meij said the purchase would make Domino’s the number one pizza delivery company in Belgium in terms of store count and would increase the Company’s store count in the country to 31 stores, with one store to be closed due to a conflict with the territory of an existing store.

 

Mr Meij highlighted that although the Company’s core strategy for Europe is for organic store growth, this acquisition was a fantastic opportunity to become the market leader in Belgium. “While our strategy is for organic growth, we will always consider quality businesses if they are presented to us. We believe purchasing Pizza Company will be a significant step forward for us to become a truly national brand in Belgium and grow our European operations,” Mr Meij said.

 

“The 15 Pizza Company stores would be rebranded to Domino’s Pizza from March 2010 with the existing operator continuing as a Domino’s franchisee.

 

“Once converted, Domino’s 30 stores across Belgium will give us the momentum to make a substantial presence in the market, similar to what we have achieved in New Zealand.

 

Mr Meij said this purchase will have no material impact on DMP’s earnings for FY10. The intended purchase of Pizza Company moves Domino’s Pizza’s guidance of opening between 40-50 stores for FY10 to more than 50.

 

A full year guidance update will be provided at the Company’s half year results on Wednesday, 17 February 2010.

 

Domino’s Pizza Enterprises Limited, Australia’s only publicly-listed pizza company, now operates 800 stores in Australia, New Zealand, France, Belgium and The Netherlands.