Domino's Pizza Group

Ticker DOM

Today's data summary

Market open
% change
-0.09%
Price Pence
257.16
Change
-0.24
As of 09:13 18 Sep 2019
Market cap. Pound sterling
1,188.67 million
As of 09:13 18 Sep 2019

Latest updates

Domino's chief left 'tough battle'

Domino's worker
Newscast

In response to this morning's news that Domino's chief exec David Wild is to step down, Markets.com analyst Neil Wilson said the pizza boss has faced a tough battle with franchise holders.

Some of the company's biggest franchisees, who own its restaurants, have threatened to declare war on Domino's unless they get a bigger slice of the company's profits.

They have warned they could even stop opening new stores if their demands were not met.

"Domino’s franchisee model is great for expanding rapidly while maintaining margins, but franchisees have worked out that it is to their cost and want more share in profits," Mr Wilson said.

"The update today doesn’t bode well for a swift resolution with management saying they do not expect a settlement until 2020."

Domino's CEO to step down

A Domino's pizza
Domino's Pizza

David Wild, the chief exec of pizza firm Domino's, is to step down the firm said today.

It said Mr Wild had told the firm's board that he plans to "retire from his role". A hunt for his successor has begun.

For the first half of the year, Domino's reported a 5.5% jump in sales across the UK and Ireland, which totalled £645.8m.

No profits internationally for Domino's

pizza being cut with a pizza wheel
DOMINO'SPIZZA

Domino's Pizza has admitted it will no longer break even in its international division.

David Wild, chief executive, also in a trading update that the group as in "open and ongoing dialogue" with its UK franchisees who run most of its 1,100 stores.

"With continued like-for-like growth, the year has started well across our core UK and Republic of Ireland markets, which account for 90% of our business. Our digital expertise remains a key driver of customer engagement, with online accounting for a record 81.7% of total sales in the UK. We remain in open and ongoing dialogue with our UK franchisees, actively exploring win-win solutions for stimulating growth and new store openings," he said.

"Internationally, performance remains disappointing and trading visibility is limited. As we outlined at the full year results, we have new management in Norway, Sweden and Switzerland, and a heightened focus on store level performance.

"However, given persistently weak system sales in all our International markets we no longer expect this part of our business to break-even this year. We are therefore further tightening our focus on International costs and capital deployment. We will provide a further update at our first half results."

Domino's hits back at newspaper claims

pizza
DOMINIO'SPIZZA

There have been some strong words from Domino's Pizza this morning.

The chain says it "strongly refutes" allegations in the Sunday Times which reported it had been accused of misleading the City over the state of relations with the franchisees who run most of its 1,100 stores.

The paper said store owners had written to Dominos, run by former Tesco executive David Wild, to say that comments suggesting a resolution to an ongoing dispute between could be found were “extremely misleading”.

In a statement Dominos said: "The company strongly refutes the reported allegations. The company has been clear and transparent that it has been in commercial discussions with franchisees, which are continuing."

The Sunday Times had also reported in December that 11 of the company's biggest franchisees had written to the board threatening to "declare war" on the firm unless they get a bigger slice of the company's profits.

Domino's Pizza makes less dough

Domino's Pizza
Newscast

Profits at Domino's Pizza have fallen after problems at the company's international operations.

Chief executive David Wild said 2018 was "a mixed year". While the UK and Ireland did well, he said the company had "experienced some growing pains which have hampered our overall financial performance."

The company said that in Norway the integration of last year's acquisition of Dolly Dimple's had "presented challenges, and losses have been greater than anticipated".

Domino's wrote down the value of its businesses in Norway, Sweden and Switzerland by £14.1m, and after including one-off costs such as these, pre-tax profits at the company fell 22% to £61.9m.

Underlying profits - which exclude one-off costs - dipped to £93.4m from £94.4m a year earlier. Group sales rose 9% to £1.26bn.

Domino's misses on profits

Domino's Pizza
Domino's Pizza

Shares in Domino's Pizza have fallen 10% after the pizza delivery chain had its first profit miss in at least nine quarters.

Growth in same-store sales at its US outlets rose by 2.6%, while franchises saw a 5.7% rise in sales, both well below analysts' expectations.

Dominos said profits were hampered by technology investments, as well as weakness in some European and Pacific markets.

Norway struggle for Domino's

Pizza
Reuters

Domino's figures have been hit by "growing pains" in its international business, particularly in Norway.

Like-for-like sales in Norway fell 6.4%, with the company blaming unseasonably warm and dry weather and delivery headwinds as it converted Dolly Dimple's stores.

The pizza company said the integration of the two Norwegian operations it bought in 2017 was "more complex and challenging than expected".

Domino's sold 12 pizzas every second

Domino's Pizza
Domino's Pizza

Domino's Pizza said it had its busiest-ever week in the run up to Christmas.

Boss David Wild revealed: "The Friday before Christmas broke all records as we sold more than 535,000 pizzas - equivalent to 12 every second."

In the 13 weeks to the end of December group sales climbed 5.5% to £339.5m, with online sales up 10.8% in the period.

The company opened 25 new stores in the quarter to bring its total to 1,261.

Mr Wild was positive about the future for the food delivery market. He said: "The UK delivered food market is vibrant and we estimate that it will grow at a compound rate of 8% a year to 2022."