Domino’s expansion slows amidst franchisee caution

The group also cut its profit forecast for the year.

Domino’s Pizza Group reported lower than expected restaurant openings as franchisees become cautious amidst an increase in employment costs.

The group also cut down its expected FY2025 underlying EBITDA in the range of £130m to £140m from a previously forecasted range of £140.8m to £149.7m.

“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,” Andrew Rennie, CEO of DPG, said.

H1 2025 total orders were flat, whilst like-for-like sales for the year were down 0.1% with Q2 down 0.7%. Total system sales inched up 1.3% to £777.8m

DPG said that it remains confident that investments in key areas such as its loyalty programme and automation, as well as its growth ambitions in Ireland, will deliver sustainable growth and returns going forward.

Domino’s Pizza Group operates the UK and Ireland business of the US-headquartered Domino’s Pizza.