Domino's Pizza Group confident for 2026 despite fall in profit

Domino’s Pizza Group PLC on Tuesday reported lower profit despite higher revenue, and said its performance in 2026 is tracking in line with expectations.

The Milton Keynes, England-based master franchise holder in the UK and Ireland for Domino’s Pizza Inc said pretax profit fell 35% to £81.1 million in the 12 months to December 28 from £124.9 million a year prior.

Revenue increased 3.1% to £685.4 million from £664.5 million, but administrative costs jumped 13% to £185.2 million from £164.1 million.

Domino’s Pizza noted a £10.4 million Shorecal impairment and £6.0 million transaction costs impacted statutory pretax profit.

Underlying earnings before interest, tax, depreciation and amortisation was down 6.6% at £133.9 million from £143.4 million.

The firm said this was due to lower volumes in the second half and a gross profit margin decline due to mix and higher rebates, along with an impact from investment in skills and capabilities.

Domino’s Pizza proposed a final dividend of 7.7 pence per share, up 2.7% from 7.5p a year ago. The total dividend for the year is 2.7% higher at 11.3p per share from 11.0p.

The company said its expanded loyalty trial is performing well, and noted a positive customer reaction to the introduction of fried chicken.

Looking ahead, Domino’s Pizza said underlying Ebitda is tracking in line with current market expectations, with an average of £137 million and a range between £132 million and £142 million.

It expects net store openings to be around the same level as 2025, which saw 31 openings and was slightly ahead of revised expectations.

The firm said the positive momentum from the 2025 Christmas trading period has continued into the first nine weeks of 2026.

‘In 2026, we are focused on strengthening our core business and driving disciplined execution across the organisation,’ said Interim Chief Executive Officer Nicola Frampton.

‘In particular, we are excited about a number of strategic and operational initiatives to drive sustainable growth, including: the successful system-wide launch of Chick ’N’ Dip; a strong pipeline of wider product innovation; the development of our loyalty program and continued enhancements to our industry-leading supply chain.’

Shares in Domino’s Pizza Group were up 3.1% at 192.20p on Tuesday morning in London.

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