On Tuesday, Domino’s Pizza Group projected its yearly profit to be at the lower spectrum of market anticipations, burdened by a sluggish start to the year for its products owing to a financial crisis. According to a consensus compiled by the company, analysts expect an average yearly profit of £147.1 million (€171.4 million).
Domino’s, which manages its own outlets as well as franchises in the UK and Ireland, increased product cost and reduced marketing expenses to support the introduction of a loyalty program and other schemes to attract consumers. Andrew Rennie, the CEO, noted in a statement, “We have sustained system growth by transferring the deflation in food costs to our franchise colleagues.”
The firm also reported that orders returned to a growth pattern in the second quarter due to elevated demand for its pizzas during the European football tournament.
Domino’s foresees the April acquisition of the remaining share in Shorecal as a “sizeable opportunity” in Ireland, enabling them to bolster expansion and establish new stores. Shorecal manages 34 of the approximately 100 Domino’s outlets across both the Republic of Ireland and Northern Ireland. To further develop and broaden its Irish supply chain centre, the company has spent an additional £1.2 million. – With reports from Reuters
(c) Copyright Thomson Reuters 2024