Popular pizza chain Domino’s has revealed a 15% decrease in profits in a half-year period, blaming a number of factors, such as customer confidence, for its dip in sales. The fast food takeaway, which has more than 1,300 restaurants in the UK, reported a drop in profits along with a lower-than-expected rise in revenue in its half-year report, which recorded sales and profits up until the end of June this year.
The company is now expecting full-year underlying profits of between £130m and £140m, which is below analysts’ estimates. Domino’s has put the dip in sales and the slowed revenue growth down to lower consumer confidence ahead of Chancellor Rachel Reeves’ autumn Budget. The company also pointed to higher wage costs, since the employers’ national insurance payments and the legal minimum wage were both increased in April of this year.
In the first half of 2025, the company opened 11 new stores in the UK, which was fewer than initially expected. It is now expected to open 20-something stores in 2025 in total. Back in April, the company revealed that it hoped to open more than 50 stores across the country.
However, the pizza chain has reported an increase in its share of the market.
Domino’s chief executive Andrew Rennie told The Standard: “Against a more difficult market backdrop, Domino’s is significantly increasing its market share by offering great value, innovative products and even faster delivery times. This is a result of a relentless focus from our colleagues and franchise partners, and I’d like to thank them all for their hard work.
“There’s no getting away from the fact that the market has become tougher both for us and our franchisees, and that’s meant that the positive performance across the first four months didn’t continue into May and June. Given weaker consumer confidence, increased employment costs and uncertainty ahead of the Autumn Statement, franchisees are taking a more cautious approach to store openings for the time being.”
He added: “Despite these near-term challenges, we remain confident in our strategy and the prospects for our resilient, market-leading business. That confidence is demonstrated by our decision to increase the interim dividend, and we also continue to assess a range of accretive growth opportunities.”
The company is now looking at more automation to keep costs down. Meanwhile, shares in the UK-listed group dropped by over 13 per cent in morning trading on Tuesday, August 5.
Other takeaway chains in the UK have reported similar falls in sales. Popular bakery chain Greggs experienced a slump in sales during the various heatwaves that struck the UK this summer.