UK's Domino's sales growth slows from previous quarter, shares fall

By Reuters News

Oct 21 (Reuters) - Britain's Domino's Pizza Group DOM.L reported a 2.3% rise in third-quarter like-for-like (LFL) sales on Wednesday, slower than the previous quarter, even though the company highlighted steady demand for its Italianos pizza range and Chick 'N' Dip fried chicken products.

  • LFL sales growth in the three months ended September 30 slowed from 5.2% in the second quarter, sending the company's shares as much as 6% lower

  • Order growth also slowed to 1.4% from 2.2% in the previous quarter

  • Fast food chains are boosting their menus and tapping into the growing popularity of fried chicken to drive footfall and to counter slowing pizza demand

  • Domino's launched "Chick 'N' Dip" last year

  • The slowdown partly reflected a tougher comparison with last year, and a smaller World Cup boost than in the second quarter, Deutsche Bank Research analyst Richard Stuber said

  • Still, year-to-date LFL sales growth was 4% at the pizza chain, ahead of expectations of 3.5% by Peel Hunt analysts

  • Domino's shares, which are up about 33% so far this year, were trading 3.3% lower at 229.2 pence by 0940 GMT

  • Panmure analyst Wayne Brown said Domino's shares had run well into the update and the weakness was also the stock "letting off some steam"

  • Domino's franchises more than 1,400 pizza stores across the UK and Ireland

  • The company maintained its full-year expectations and expressed confidence in growing earnings in fiscal 2027 and beyond

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.