Domino's is eyeing troubled rival Eagle Boys as it plans to almost double its Australia and New Zealand store network in the wake of another record profit.
The fast food retailer outlined the aggressive nine-year expansion plan after new store openings and strong same store growth in six of its seven territories lifted full-year net profit 28.7 per cent to $82.4 million.
Revenue rose 30.9 per cent to $705.7 million in the 12 months to July 3, with Australia and New Zealand leading the pack in terms of same store sales growth.
Domino's biggest market showed a 14.8 per cent increase in same store sales, against a company-wide improvement of 10.9 per cent.
"Many of our new stores are hitting volumes we would never have dreamt of," chief executive Don Meij said on Tuesday.
"We need to open up new stores to meet the pent-up demand."
Domino's wants to expand its Australia and New Zealand store network from 714 to 1,200 outlets by 2025 - 300 more than it previously targeted - by which time it plans to have 4,550 stores across the globe.
Mr Meij said the next acquisition could come within six months or it could take as long as three years, although he confirmed an interest in rival Eagle Boys, which was put up for sale after going into voluntary administration in July.
"We are taking a look. It is quite small," Mr Meij said of the near 120-store chain.
Mr Meij said that, even with 1,200 stores, Domino's would still trail McDonald's, Subway and KFC as the fourth largest player in the $20 billion-plus quick service restaurant sector in Australia and New Zealand.
That meant there was plenty of room to grab a bigger market share, he said.
Mr Meij said a broad range of desserts, breads and other side dishes was stealing customers from non-pizza outlets.
"We are growing sales from outside the pizza category," he said.
"In many cases, we get full transactions that are non-pizza."
The company also delivered its strongest guidance to date, forecasting net profit to rise 30 per cent this financial year.
Despite overall revenue rising, Japan's same store sales declined while Europe (Germany, France, Netherlands and Belgium) met the lower end of the company's guidance with 8.2 per cent same store sales growth.
Domino's shares finished $2.87, or 3.73 per cent, lower at $74.11.
CMC Markets chief market strategist Michael McCarthy said Domino's share price had nearly doubled in the past 12 months, and while its results were "exceptional, the pricing of the share price has gotten ahead of that".
DOMINO'S DELIVERS THE DOUGH
* Net profit up 28.7pct to $82.4m
* Revenue up 30.9pct to $705.7m
* Final dividend up 11.6 cents to 38.8 cents, 70 per cent franked
