Domino's Pizza has experienced a significant 15 percent drop in profit over the past year, as the company grapples with weak sales and a challenging consumer environment. The FTSE 250-listed pizza chain reported that its underlying profit before tax fell from £107 million to £91 million, highlighting ongoing struggles in the competitive fast-food market.
Sales Performance and Financial Results
While Domino's total turnover increased by 1.5 percent to £1.6 billion in the year to December 2025, the like-for-like sales figure, which excludes variables such as VAT, saw only a minimal rise of 0.2 percent. Revenue climbed by a modest 3.1 percent to £685 million, indicating sluggish growth amid economic pressures.
The company opened 31 new stores in 2025, slightly exceeding expectations and bringing its total franchise network to 1,399 stores across the UK and Ireland. However, total orders declined by 0.9 percent, reflecting broader consumer hesitancy and market saturation.
Leadership Changes and Market Response
Domino's is currently operating under interim leadership, with both an interim chief executive and an interim finance director in place following the abrupt departure of former boss Andrew Rennie in November. Despite the profit dip, the group's share price showed resilience, bouncing 3.8 percent to 193p at Tuesday's market open, leaving shares up more than 11 percent year-to-date.
Over the past year, shares have fallen by 34 percent, and the company was the UK's most-shorted firm in October, as investors like Blackrock and Citadel anticipated hits from rising labour costs and weak consumer confidence. It now ranks as the twelfth-most shorted company, with some easing in market pressure.
Strategic Focus on New Product Lines
Analysts have raised concerns that Domino's new Chick 'N' Dip range could distract from its core pizza offerings, but the company reports that 80 percent of orders for the new range included a pizza. Interim chief executive Nicola Frampton defended the initiative, stating, "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."
Dan Lane, an analyst at Robinhood, commented that Domino's is betting on its fried chicken menu to compete with giants like KFC and Popeyes. He noted, "We might not be at 'peak pizza,' but the company will certainly have to find a way to turn innovation into profit growth if it wants to give up its place as one of the most shorted stocks on the UK market."
The fried chicken range, described by the departing chief executive as a "bold new chapter," is expected to be followed by a pipeline of new products as Domino's seeks to revitalise its growth trajectory in a tough economic landscape.
