Domino’s Pizza UK Serves Up Q3 Sales Growth, Maintaining Full Year Guidance

Domino's Pizza Group PLC (LON: DOM) has reported positive sales and operational momentum in its Q3 2025 trading statement, reinforcing its full-year guidance despite a challenging consumer environment.

System sales saw an increase, driven by strategic initiatives and menu innovation.

Total system sales for Q3 25 rose by 2.1% to £382.7 million, compared to £374.8 million in Q3 24. Like-for-like (LFL) system sales, excluding VAT and splits, increased by 1.0%. This growth was achieved despite a 1.5% decrease in total orders, reflecting the impact of weaker consumer sentiment across the Quick Service Restaurant (QSR) sector.

The company highlighted the positive initial customer reaction to new menu items such as the Chick ‘N' Dip and the Ultimate Indian Feast. The Ultimate Indian Feast, originating from Domino's internal DomiChef competition, accounted for approximately 7.6% of orders since its launch.

Domino's is maintaining its FY25 guidance, projecting underlying EBITDA in the range of £130 million to £140 million. New store openings are expected to be in the mid-twenties, with 18 new stores opened year-to-date, including the first new POD format.

Domino's commitment to returning excess capital to shareholders was demonstrated through the completion of a £20 million share buy-back program, capitalizing on the current share price levels.

Driver Breakdown:

• Menu Innovation: Successful launch of new products like Chick ‘N' Dip and the Ultimate Indian Feast drove customer engagement.
• Collection Strategy: A national collection campaign led to a 1.7% increase in collection orders, partially offsetting delivery declines.
• Franchisee Support: Ongoing collaboration with franchisees to mitigate cost pressures and maintain service levels.

AskTraders Takeaway: The Q3 results, while positive, also highlight the challenges Domino's faces in a competitive and cost-conscious market. The upcoming Investor Day on December 9th will be a crucial event for markets to assess the company's long-term growth strategy.

Andrew Rennie, Chief Executive Officer, stated, “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.”

Delivery orders experienced a 3.4% decline, attributed to weaker consumer sentiment. However, collection orders rose by 1.7%, indicating some success with the national collection campaign. Despite the order volume dip, strategic price adjustments helped maintain overall system sales growth.

Domino's remains confident in achieving its full-year profit expectations. The company is actively managing cost inflation and working with franchisees to maintain service quality. Capital investment for FY25 is estimated at approximately £25 million, with net debt expected to be between £280 million and £300 million at year-end.

The company has signed a lease for a new supply chain center (SCC5) in Avonmouth, with construction underway. This facility aims to enhance efficiency and capacity within Domino's integrated supply chain system.