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

Domino's Pizza

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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

 (Reporting by Nithyashree R B in Bengaluru; Editing by Ronojoy Mazumdar and Devika Syamnath)
 ((NithyashreeRB@thomsonreuters.com))