REG - Domino's Pizza Grp - Q3 2025 Trading statement

Dominos PizzaAnnouncement

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RNS Number : 0077G  Domino's Pizza Group PLC  04 November 2025

4 November 2025
 

Domino's Pizza Group PLC ("DPG")

Q3 2025 Trading statement

 

 

POSITIVE Q3 SALES AND OPERATIONAL MOMENTUM; MAINTAIN FULL YEAR GUIDANCE

 

Highlights

·    Positive system sales growth:

o Q3 25 total system sales up 2.1%.

o Q3 25 like-for-like system sales (ex. VAT, ex. splits) up 1.0%.

 

·    Total orders down 1.5% in Q3 25:

o Collection up 1.7% reflecting some continued benefit of national collection
campaign

o Delivery (down 3.4%) impacted by weaker consumer sentiment across the QSR
sector

 

·    Positive initial customer reaction to the introduction of Chick 'N'
Dip and the new Ultimate Indian Feast. Industry leading delivery times
maintained.

 

·    FY25 guidance remains unchanged:

o Underlying EBITDA in range of £130m to £140m

o New store openings expectation unchanged at mid-twenties (YTD 18 NSOs
including our first new POD format)

 

 

As previously announced, DPG will be hosting an Investor Day on 9(th) December
where senior members of the management team will provide an update on, among
other things, growth opportunities for the core Domino's UK and Ireland
business. Further details for the event will be provided in due course.

 

 

Andrew Rennie, Chief Executive Officer, said:

"We have delivered a solid Q3 performance with positive sales and operational
momentum despite the continued challenging consumer backdrop. In particular I
am really pleased with the initial results from the introduction of our
exciting Chick'N'Dip brand.

'Our franchisees continue to lead the industry with fast delivery times and we
continue to work with them to mitigate the impact of increasing costs and any
potential impact of the UK budget on 26th November.

'We remain on track to achieve our full year profit expectations and I look
forward to setting out our future plans at the Investor Day in December."

 

 

 

 

Q3 trading and operating review

                                                                        Q3 25(1)  Q3 24(1)  Change
 System sales                                                           £382.7m   £374.8m   +2.1%
 LFL system sales growth (ex VAT, ex. splits) on a comparable basis(2)  +1.0%     +0.7%

 

 

Trading throughout the period has continued in line with our expectations,
reflecting the impact of the weaker QSR market on our franchisees and
customers' lower discretionary income.  Franchisees have had to tactically
increase price alongside targeted value deals, in order to partially mitigate
higher wages and employee taxation and maintain the high service that our
customers expect.

Total system sales were £382.7m, up 2.1% vs. Q3 24 and, on a like-for-like
basis (excluding splits), grew by 1.0%. Total Order count reduced by 1.5%,
impacted by higher pricing referred to above, particularly in Delivery. The
tough operating environment is likely to continue to impact order counts into
2026.

In September, we launched our new Ultimate Indian Feast pizzas - Gunpowder
Chicken and Masala Paneer with a complimentary wings product.  This product
originated from DomiChef - our internal competition where employees across the
system compete with ideas for new pizza recipes and products which go on to
commercial development with our food innovation team. The Ultimate Indian
Feast has been well received by customers and accounted for about 7.6% of
orders since launch. Our chicken trial - Chick 'N' Dip has traded well, for
just over 8 weeks, across stores in the North-West of England and Northern
Ireland.  We continue to assess and refine this offer, reflecting customer
and franchisee feedback, as we assess its suitability for a whole system
launch in 2026.

Our franchisees continue to deliver great service to customers - a core
differentiator in our market - with industry leading delivery times.  We have
opened 18 stores in 2025 to date and expect to have opened mid-twenties new
stores by year end.  Our franchisees continue to focus on managing and
mitigating significant employee cost inflation in their businesses alongside
maintaining high service levels.

In July, we signed the lease on our new supply chain centre ("SCC5") in
Avonmouth, with building commenced in September.  SCC5 will bring new, highly
efficient and automated warehouse and distribution capacity to our integrated
supply chain system ensuring that we have capacity to manage growth, support
the needs of the future of the business and provide increased redundancy for
business continuity planning.

As stated in the interim results, we continue to assess opportunities for a
second brand within our strict financial and strategic guardrails. Consistent
with our commitment to return excess capital to shareholders, we completed a
£20m share buy-back taking advantage of current share price levels.

 

On December 9(th) Domino's will be holding an Investor Day where a number of
the leadership team will be presenting updates on key operational initiatives
to deliver our strategy. Further details of this will be released in due
course.

 

 

 

 

 UK & ROI         Total (All Stores)
                  Sales   Volume  Price  Orders (m)  YOY Order Growth
 Total
 Q1               2.1%    (1.3)%  3.4%   17.8m       0.5%
 Q2               0.5%    (2.9)%  3.4%   17.3m       (0.6)%
 H1               1.3%    (2.2)%  3.5%   35.1m       (0.0)%
 Q3               2.1%    (2.9)%  5.0%   17.1m       (1.5)%

 Delivery Only
 Q1               2.4%    (1.1)%  3.5%   11.6m       1.3%
 Q2               (0.7)%  (4.5)%  3.8%   10.8m       (2.6)%
 H1               0.9%    (2.9)%  3.7%   22.5m       (0.6)%
 Q3               0.9%    (4.5)%  5.4%   10.7m       (3.4)%

 Collection Only
 Q1               1.2%    (1.7)%  2.9%   6.2m        (0.9)%
 Q2               4.2%    1.2%    3.0%   6.5m        2.9%
 H1               2.7%    (0.3)%  3.0%   12.6m       1.0%
 Q3               5.7%    0.9%    4.8%   6.4m        1.7%

* Total system sales, volume and price shown on a reported basis.

 

Current trading, outlook and guidance

We remain on track to deliver a result in line with our expectations for 2025,
with FY25 Underlying EBITDA(4) to be in the range of £130m - £140m.(5)

 

Updated technical guidance for FY25:

·      Underlying depreciation & amortisation c.£23m

o  Upper end of range reflecting higher capital expenditure

·      Underlying interest (excluding foreign exchange movements) of
c.£20m

o  Reflects increase due to share buyback program.

·      Estimated underlying effective tax rate of c.25% for the full
year

·      Capital investment of c.£25m

·      Net debt at year-end between £280m and £300m

 

For further information, please contact:

Domino's Pizza Group plc:

Michael Barker, Director of Investor Relations - +44 (0) 7345 418 580

Brunswick:

Tim Danaher / Emilia Smith - 020 7404 5959

 

A conference call for investors and analysts will be held at 09:30 GMT today.

To participate in the Conference Call please register using the link below:

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Operator assisted Dial-in:

United Kingdom (Local): +44 20 3936 2999

United Kingdom (Toll-Free): +44 800 358 1035
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Replay information:

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UK (Toll-Free): 0808 304 5227

USA (Local): 1 845 709 8569

USA (Toll Free): 1 855 762 8306

Access Code: 169323

Expiration Date: Wednesday, November 13, 2024, 11:59 PM GMT

 

Notes

1.     Q3 25 is 13 weeks to 28 September 2025. Q3 24 is 13 weeks to 29
September 2024.

2.     Like-for-like (excluding splits) system sales performance is
calculated for UK & Ireland against a comparable 52-week period in the
prior period for mature stores which were not in territories split in the
current period or comparable period. Mature stores are defined as those opened
prior to 31 December 2023.

3.     Underlying is defined as statutory performance excluding
discontinued operations, and items classified as non-underlying which includes
significant irregular costs, significant impairments of assets, together with
fair value movements and other costs associated with acquisitions and
disposals.

4.     Current mean of FY25 Underlying EBITDA expectations: range of
£130.9m - £137.0m, with a mean of £133.6m. Based on 10 analysts' forecasts.

5.     YTD 25 is the 39 weeks to 28 September 2025. YTD 24 is the 39 weeks
to 29 September 2024.

 

 

About Domino's Pizza Group

Domino's Pizza Group plc is the UK's leading pizza brand and a major player in
the Irish market. We hold the master franchise agreement to own, operate and
franchise Domino's stores in the UK and the Republic of Ireland. As of 4
November 2025, we had 1,388 stores in the UK and Ireland.

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