PizzaExpress earnings falter amid casual dining crunch, tough weather
The pizza chain’s total sales, however, increased.
In its full year results for the 52 weeks ended 30 December 2018, PizzaExpress saw a decline of 1.0% in its underlying like-for-like sales from the comparative period in 2017, while EBITDA fell 15.3% to £80.2 million.
The company attributed sector-wide cost headwinds in the UK and more challenging market conditions in its less mature international markets.
“In the UK & Ireland, the unexpected snow in the first half of the year and sustained period of heat in the second half impacted the whole industry,” Jinlong Wang, Group Chairman and Chief Executive Officer of PizzaExpress, said.
The company’s group turnover, meanwhile, rose 1.6% to £543 million during the period. Twenty-six new restaurant openings in 2018 also pushed PizzaExpress’s company-owned international outlets to 104, with international markets now generating just under 20% of sales. Total sales for the period were up 8.4% from 2017.
The year also saw the company explore new concepts in the casual dining scene. In March, PizzaExpress launched ZA, a new fast casual concept that sells pizza by the slice, in Fenchurch Place, London. In Shanghai, China, the company also launched a new fine casual dining concept called ‘Meanwhile’.
“Looking forward, whilst we expect both the UK and International markets to remain competitive we are confident that our focus on customer-led innovation and investment in our brand and our people will put us in a strong position to succeed in this environment and continue to deliver a resilient performance,” Wang said.
