Updated March 12th, 2024 at 15:35 IST

Domino's Pizza Group predicts Q1 order slump

Domino's Pizza franchisee cites price increases and consumer reluctance amid cost of living crisis for delivery decline.

Reported by: Business Desk
Representative | Image:Freepik

Domino's Q1 order decline: Britain's Domino's Pizza Group, anticipates a decline in orders and a slowdown in sales growth during the initial quarter, citing a reduction in marketing expenditure to facilitate the rollout of forthcoming initiatives such as a loyalty programme. Consequently, its shares witnessed a nearly 7 per cent drop during early trading hours due to the sluggish beginning of the year.

The local franchisee of Domino's Pizza attributed the decline in deliveries to a combination of price hikes to offset increased raw material costs and customer reluctance amidst the prevailing cost of living crisis.

Nonetheless, the company remains optimistic about meeting full-year earnings expectations. With a vision to achieve £2 billion ($2.56 billion) in sales by 2028 through an expansion to 1,600 stores, and further targeting £2.5 billion in sales by 2033 with 2,000 stores, Domino's Pizza Group, currently operating 1,319 outlets in the UK and Ireland, reported £1.5 billion in sales for the fiscal year ending December 31. Underlying core profit demonstrated a modest increase of 3.6 per cent, reaching £138.1 million.

Despite a marginal 1 per cent increase in total orders for the year, boosted by a 13.3 per cent surge in its collections segment, a decline in deliveries was observed as customers sought to economise on delivery fees.

(With Reuters Inputs)

Published March 12th, 2024 at 15:30 IST