Consumer confidence and costs hit Domino’s Pizza profits

Weaker consumer confidence and the rise in wage costs have been blamed for a drop in profits for Domino’s Pizza.

 

The half year results ended 29 June 2025 for the UK arm of the pizza takeaway business saw a drop in profits and a lower-than-expected rise in revenue.

 

Underlying profit before tax dropped almost 15% to £43.7m, while underlying EBITDA was £63.9m, down 7.4%, driven primarily by lower supply chain volumes.

 

Orders for the half year were flat, which Domino’s puts down to weakened consumer confidence, with group revenue nudging up only 1.4% to £331.5m.

 

The business now expects FY25 underlying EBITDA in range of £130m to £140m.

 

The group plans to maximise profits going forward through efficiencies in its supply chain, while also continuing to open new stores and grow order volumes through digital innovations.

 

Despite the disappointing results, the group said it had made significant strides market share during the period, with Domino’s Pizza now representing 7.2% of the total UK takeaway market (up by 20 basis points), while its share of the UK pizza takeaway market increased 560 basis points to 53.7%.

 

Domino’s chief executive Andrew Rennie said: “Against a more difficult market backdrop, Domino’s is significantly increasing its market share by offering great value, innovative products and even faster delivery times. This is a result of a relentless focus from our colleagues and franchise partners, and I’d like to thank them all for their hard work.

 

“There’s no getting away from the fact that the market has become tougher both for us and our franchisees, and that’s meant that the positive performance across the first four months didn’t continue into May and June. Given weaker consumer confidence, increased employment costs and uncertainty ahead of the Autumn Statement, franchisees are taking a more cautious approach to store openings for the time being.

 

“Despite these near-term challenges we remain confident in our strategy and the prospects for our resilient, market-leading business. That confidence is demonstrated by our decision to increase the interim dividend, and we also continue to assess a range of accretive growth opportunities.”