Domino's Pizza Group expects orders to fall in Q1
Reuters
Published Mar 12, 2024 07:30
Updated Mar 12, 2024 09:01
(Reuters) -Britain's Domino's Pizza Group (LON:DOM) expects lower orders and sales growth in the first quarter as it holds back on marketing spend to support the launch of a loyalty programme and other initiatives later in the year.
Its shares fell nearly 7% in early trade after it pointed to a slow start to the year.
The local franchisee of U.S.-based Domino's Pizza Inc had raised prices to keep up with higher raw materials costs but deliveries have fallen as customers grapple with the cost of living crisis.
However, it said full-year earnings are still seen in line with expectations.
The group is targeting 2 billion pounds ($2.56 billion) in sales by 2028 as it increases the number of stores to 1,600, and 2.5 billion pounds of sales by 2033 from 2,000 stores.
Domino's Pizza Group, which currently has 1,319 stores in the UK and Ireland, posted sales of 1.5 billion pounds for the full year ended Dec. 31. Underlying core profit rose 3.6% to 138.1 million pounds.
Total orders rose just 1% for the year, with a 13.3% rise in its collections business offset by a slump in deliveries as customers looked to save on delivery charges.
($1 = 0.7811 pounds)
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Written By: Reuters
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