Domino's eyes bigger slice of UK chicken market as H1 profit rises

The group’s system sales rose 6.1% to £825.3m.

Domino's Pizza Group is aiming to significantly expand its share of the UK's chicken market after reporting higher first-half statutory profit, with the company positioning its new CHICK 'N' DIP range as a key driver of long-term growth.

The pizza chain said it plans to grow its current 4.2% share of the UK chicken market over the next few years, supported by the nationwide rollout of CHICK 'N' DIP, which launched in February and has lifted chicken's contribution to sales to around 9% from about 7.5% before the launch.

The strategy comes as Domino's reported statutory profit after tax of £30.8m for the 26 weeks ended 28 June, up from £29.9m a year earlier. Group revenue increased to £353.6m from £331.5m, whilst system sales rose 6.1% to £825.3m.

Domino's said the chicken range is helping attract new customers, broaden meal occasions, and increase basket sizes, whilst supporting its ambition to grow its overall share of the quick-service restaurant market from the current 7.7%.

The company said early trading indicates the range is resonating with both existing high-frequency customers and new consumers, with management describing it as complementary to its core pizza business.

Beyond chicken, Domino's is continuing to expand its customer loyalty programme, which has attracted around 2.2 million members during its pilot, and plans a full rollout in the fourth quarter. It is also investing in supply chain productivity and automation, including its new Avonmouth distribution centre.

Trading momentum remained positive during the first half, with like-for-like sales rising 4.9% and like-for-like orders increasing 1.6%, helped by continued pizza demand, the CHICK 'N' DIP launch, and higher sales during the World Cup.

The company said it remains on track to meet full-year earnings expectations.