Domino’s profits plunged in the first half of 2025 as the pizza chain suffered from weaker consumer demand and rising employment costs.
For the 26 weeks to 29 June, the group experienced a 14.8% decline in pre-tax profit to £43.7m, as revenue rose by just 1.4% to £331.5m.
Over the period, orders remained flat, while like-for-like sales dipped by 0.1% and by 0.7% in the second quarter.
Domino’s also experienced lower-than-expected store openings, which it attributed to cautious franchisees, given employment costs. The takeaway firm opened 11 stores year-to-date and new store openings for the full year are expected to be in the mid-20s. However, it confirmed there was a “healthy pipeline” for sites in 2026.
Despite the weaker performance, the pizza giant’s share of the UK takeaway market increased by 20 basis points to 7.2%, while its share of the UK pizza takeaway market surged by 560 basis points to 53.7%.
Domino’s also continued to improve customer service over the period, with average delivery times having reduced to 24.1 minutes, down from 24.6 minutes over the same period in 2024.
“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,” said CEO Andrew Rennie.
“There’s no getting away from the fact that the market has become tougher for both us and our franchisees, and that’s meant that the positive performance across the first four months didn’t continue into May and June.
“Despite these near-term challenges we remain confident in our strategy and the prospects for our resilient, market-leading business,” he added.
Domino’s has seen total orders and like-for-like sales improve towards the end of July. However, due to weaker consumer confidence impacting sales growth and the uncertainty of employment costs increasing, it now expects underlying EBITDA for the full year to be in the range of £130m to £140m.
The pizza giant added: “We remain confident that our investments in key areas such as our loyalty programme and automation, as well as our growth ambitions in Ireland, will deliver sustainable growth and returns.”
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