REG - Domino's Pizza Grp - Q1 Trading statement

Domino's PizzaAnnouncement

24/04/2025 07:02

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RNS Number : 9405F  Domino's Pizza Group PLC  24 April 2025

24 April 2025
 
LEI: 213800Q6ZKHAOV48JL75

Domino's Pizza Group PLC ("DPG") - Q1 Trading statement

Continued order growth in Q1, positive start to Q2

Highlights

·     Positive total system sales(1), like-for-like sales(2) and total
order growth in Q1 25

o  Q1 25 total system sales up 2.1%

o  Q1 25 like-for-like sales up 0.5%

·     Total orders up 0.5% in Q1 25

o  Delivery up 1.3% driven by continued intense focus from franchise partners

o  Collection down 0.9% but improving trajectory supported by first ever
national collection campaign

·    Continued operational and strategic progress with average delivery
times approaching 24 minutes, loyalty trial delivering incremental orders
across all cohorts and Crème Egg cookie sold out ahead of Easter

·     Total orders and like-for-like sales(2) remain positive in Q2 25

·     Continue to expect FY25 Underlying(3) EBITDA in line with market
expectations(4)

 

Commenting on the results, Andrew Rennie, CEO said:

"Our focused operational strategy returned the Domino's system to growth in
the second half of last year and growth has continued in 2025. During Q1
Domino's market share has strengthened, our franchise partners have driven
further improvements in delivery times and we continue to focus on giving our
customers compelling value.

"Looking ahead, whilst the market and consumer environment has become more
uncertain since our FY results, we remain confident that our ongoing strategic
initiatives, store opening pipeline and collaboration with our franchise
partners will allow us to continue to win market share. Our initial assessment
of newly introduced tariffs shows minimal direct impact. We continue to assess
any indirect impacts on our supply chain, monitor the broader environment
going forward and our full year expectations remain unchanged."

 

 

Q1 25 trading performance and operational momentum

                               Q1 25     Q1 24     Change
 Total system sales            £393.3m   £385.2m   +2.1%
 LFL system sales (ex-splits)  +0.5%     (0.5)%    +1.0bps
 Total orders                  17.8m     17.7m     +0.5%

 

The positive trends we saw in the second half of 2024 have continued in 2025
despite an uncertain market. Q1 25 total system sales were up 2.1%,
like-for-like system sales, excluding splits, were up 0.5% and total orders
were up 0.5% compared to Q1 24.

Our delivery times continue to improve and are a clear, competitive
differentiator. Average delivery times in Q1 25 were 24.3 minutes compared to
25.1 minutes in Q1 24. We also saw a continued improvement in on-time
deliveries and a reduction in late deliveries.  The benefits of this showed
in our performance where delivery orders grew by 1.3% compared to Q1 24.

Although collection orders declined 0.9% in Q1, we see clear consumer value in
the collection channel in this uncertain economic environment and order trends
have improved as a result of our first ever national marketing campaign
focused on value in collection which was launched at the end of Q1.

After positive results from our first phase of our loyalty trial, we have
moved into the second phase, inviting c.3m customers to participate. In this
phase we are testing our loyalty models across a wider range of cohorts and we
are seeing early signs of incremental orders across all these cohorts. We
continue to target a full roll out in FY26 and will update further on the
second phase of the trial at the H1 results in August.

We have 26 new stores in construction or planning approved. In a more
uncertain environment we continue to expect in excess of 50 new stores in
FY25, albeit, as usual, these will be second half weighted and planning
remains slow.

In January we launched two new sides 'Loaded Veg' and 'Loaded Veg with
Chicken' and added a personal thin crust option to our Cheeky Little Pizzas
Range, all under 400 calories, as part of our lunch range. We also brought
back our Chicken Mexicana range of pizza, sides and lunchtime wrap and our
second year of the Domino's Cookie with Crème Egg once again sold out before
Easter.

As we outlined at our full year results in March, we continue to explore
targeted, accretive opportunities, which would be financed within our existing
balance sheet capacity, while remaining committed to returning excess capital
to shareholders in the future.

 

Contacts

For Domino's Pizza Group plc:

Investor Relations

Will MacLaren, Director of Investor Relations +44 (0) 7443 192 118

Media:

Tim Danaher, Emilia Smith - Brunswick +44 (0) 207 404 5959

 

Notes

1.   System sales represent the sum of all sales made by both franchised and
corporate stores to consumers in UK & Ireland. These are excluding VAT and
are unaudited.

2.    Like-for-like (excluding splits) system sales performance is
calculated for UK & Ireland against a comparable 52-week period in the
prior period for mature stores which were not in territories split in the
current period or comparable period. Mature stores are defined as those opened
prior to 31 December 2023.

3.   Underlying is defined as statutory performance excluding items
classified as non-underlying which includes significant irregular costs,
significant impairments of assets and other costs associated with acquisitions
and disposals.

4.    Current mean of FY25 Underlying EBITDA expectations is £147.4m with a
range of £140.8m - £149.7m. Based on 9 analysts' forecasts.

 

 

About Domino's Pizza Group

Domino's Pizza Group plc is the UK's leading pizza brand and a major player in
the Irish market. We hold the master franchise agreement to own, operate and
franchise Domino's stores in the UK and the Republic of Ireland. As of 24
April 2025, we had 1,375 stores in the UK and Ireland. We also have a 12%
shareholding in Domino's Pizza Poland.

 

Cautionary statement

Certain statements made in this announcement are forward-looking statements.
Such statements are based on current expectations and assumptions and are
subject to a number of risks and uncertainties that could cause actual events
or results to differ materially from any expected future events or results
expressed or implied in these forward-looking statements. Persons receiving
this announcement should not place undue reliance on forward-looking
statements. Unless otherwise required by applicable law, regulation or
accounting standard, Domino's does not undertake to update or revise any
forward-looking statements, whether as a result of new information, future
developments or otherwise.

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