Analysis of Financial Performance and Position of Domino's Pizza Inc

Accounting and Finance

Contents
Introduction......................................................................................................................................3
Main Body.......................................................................................................................................3
Analysis of Financial Performance:.......................................................................................3
Analysis of Financial Position:...............................................................................................6
Conclusion.......................................................................................................................................8
REFERENCES................................................................................................................................9

Introduction
Recording and analysis of corporate transactions was referred to as accounting and
the finance. Recognizing the incoming and outgoing cashflows will enable to prevent loss by
allowing make smart decisions in the long run. The study covers analysis of financial
performance of Domino's Pizza Inc using financial ratios like profit margins, return on capital
employed, net-asset turnover etc. Further the study covers analysis of financial position including
short-term liquidity, long-term solvency, working capital etc. Domino's Pizza Group plc is global
franchise of the Domino's Pizza, a multinational fast foods pizza distribution chain. It
has headquartered in the United Kingdom. This owns a large minority stake in the Domino's
Pizza franchisees in the Iceland, Norway and Sweden. Corporation is a part of FTSE 250 Index
as well as is quoted on London Stock Exchange. In terms of retail revenue and earnings,
Domino's Pizza Corporation is the leading master-franchisee in Domino's framework (Annual
Report of Domino’s Pizza Group Plc: 2019).
Main Body
Analysis of Financial Performance:
The company's main UK and even Ireland market continues to do well, with like-for-like
revenue in the UK up around 3.7 percent. With online revenues up 8.8%, the corporation's digital
functionalities continue to drive this development. Collections have performed well, increasing
by 5.3 percent, and this remains major opportunity for the corporation in the future. System
sale in the United Kingdom increased by 4.8 percent, while sales in Ireland increased by 4.9
percent. The underlying EBIT prior joint partnerships and partners in the UK as well as Ireland
increased by 1.1 percent to £100.4 million, reflecting an 8.3 percentage margin as percentage of
system revenue (2018: 8.6 percent). The corporation made a profit of £2.0 million from its UK
joint investments (2018: £1.7 million), culminating in underlying UK and even Ireland's EBIT of
£102.4 million, up 1.4 percent (Wenji, 2019).
Following the decision in October to dispose of our directly operated International
businesses, being Norway, Sweden, Switzerland and Iceland, the trading results of these
businesses, together with International central costs, have been classified as discontinued
operations and excluded from underlying results. Combined, our discontinued International
businesses generated £100.7m system sales (2018: £104.1m) and a trading loss of £20.8m (2018:
loss of £6.6m). Following company's decision in Oct. to sell their directly run International
businesses, which include Norway, Sweden, Iceland and Switzerland operating performance of