Domino’s Pizza Group, the UK master franchisee of Domino’s Pizza, has launched a £20m share buyback programme as it reaffirmed its annual earnings forecast.
The purpose of the programme is to reduce the pizza giant’s share capital and enable it to “take advantage of the opportunity to purchase shares in meaningful size at current share price levels, generating attractive returns for shareholders”.
As a result, Peel Hunt is upgrading Domino’s earnings per share forecasts by 1% for this year and 2% for next year.
The investment bank also expects the company’s like-for-like sales to increase next year, boosted by improved weather, the FIFA men’s World Cup and the full-scale launch of its loyalty programme.
The group’s full-year expectations – that year-end net debt will be between £280m and £300m – remain unchanged.
Last month, Domino’s reduced its profit forecast for 2025 from £141m–£150m down to £130m–£140m, after pre-tax profit fell by 14.8% to £43.7m in the 26 weeks ending 29 June.
“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,” said Domino’s CEO Andrew Rennie at the time.
“Despite these near-term challenges we remain confident in our strategy and the prospects for our resilient, market-leading business.”
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