Domino’s Pizza Group LON:DOM reported steady third-quarter performance on Tuesday, with modest sales growth and resilient operational execution helping the company maintain its full-year guidance despite a softer consumer environment across the UK’s quick service restaurant (QSR) sector.
Total system sales for the three months to the end of September rose 2.1 per cent year on year to £382.7mn, with like-for-like sales — excluding VAT and store splits — up 1.0 per cent. The company said total order volumes declined by 1.5 per cent, reflecting pricing adjustments to offset inflationary pressures and subdued consumer sentiment.
Collection orders grew 1.7 per cent, benefitting from the continuation of a national marketing campaign encouraging customers to pick up their pizzas, while delivery orders fell 3.4 per cent as households reined in discretionary spending.
Challenging consumer backdrop
Andrew Rennie, Chief Executive Officer, said the performance reflected “positive sales and operational momentum despite the continued challenging consumer backdrop”. He added: “Our franchisees continue to lead the industry with fast delivery times and we continue to work with them to mitigate the impact of increasing costs and any potential impact of the UK budget on 26th November.”
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The group reiterated its full-year underlying EBITDA guidance of between £130mn and £140mn and maintained its target for new store openings at “mid-twenties” for the year. So far, 18 stores have opened in 2025, including the first of its new “POD” formats aimed at more flexible, space-efficient locations.
Product innovation driving engagement
Domino’s highlighted strong early customer reception to its new product initiatives, including the “Chick ’N’ Dip” chicken range and the “Ultimate Indian Feast” pizzas — Gunpowder Chicken and Masala Paneer — both of which have helped refresh the menu. The Indian Feast line, developed through the company’s internal “DomiChef” innovation competition, has accounted for roughly 7.6 per cent of orders since launch. The Chick ’N’ Dip trial, running for eight weeks across the North West of England and Northern Ireland, has also traded well, with plans under review for a national rollout in 2026.
Rennie said he was “really pleased with the initial results from the introduction of our exciting Chick ’N’ Dip brand,” adding that the company remained focused on driving innovation while supporting franchisees through a period of cost pressure.
Managing cost pressures and building for growth
Franchisees have been compelled to raise prices selectively to offset higher wages and employee taxation, while continuing to maintain “industry-leading delivery times”, a key differentiator for the brand. Domino’s said it expected ongoing cost inflation and lower consumer confidence to continue affecting order volumes into 2026, though the group’s balance sheet remains robust.
Capital investment for the year is expected to be about £25mn, including development of a new supply chain centre in Avonmouth, known as SCC5. Construction began in September, and once operational, the facility will add automation and efficiency to Domino’s logistics network, ensuring capacity to support future growth and improve business continuity resilience.
The company also confirmed it had completed a £20mn share buyback during the quarter, taking advantage of what it described as “attractive current share price levels”. Net debt is expected to stand between £280mn and £300mn at year-end.
Domino’s Pizza trading in line with expectations
Domino’s said trading since the quarter end had remained in line with expectations and reaffirmed its forecast of underlying depreciation and amortisation of about £23mn, and underlying interest costs of roughly £20mn, reflecting the impact of the buyback programme.
Rennie concluded: “We remain on track to achieve our full-year profit expectations and I look forward to setting out our future plans at the Investor Day in December.”
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