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2mo ago

Domino’s Cuts EBITDA Guidance as Costs Bite and Store Openings Slow

A 7.4% fall in H1 EBITDA has prompted a cut to full-year guidance; the group is trialing loyalty programmes, automating its supply chain, evaluating a second brand to boost efficiency.

Andrew Rennie, Domino’s Pizza Group chief executive, said he was concerned about further tax rises

Overview

  • Underlying EBITDA fell 7.4% to £63.9 million in the half-year, while underlying profit before tax declined 14.8% to £43.7 million.
  • The group lowered its full-year EBITDA forecast to £130 million–£140 million, a 7.5% downgrade from prior estimates.
  • Franchisees opened just 11 new stores in the UK and Ireland in H1 and now expect overall openings in the mid-20s, down from an original plan for over 50.
  • Shares tumbled nearly 19% after the profit guidance cut and a second-quarter like-for-like sales dip of 0.7%.
  • Domino’s grew its UK pizza takeaway market share to 53.7% as it advances loyalty trials, supply-chain automation and explores a second brand.