Mixed picture for Domino’s as solid sales undercut by falling profits

Domino’s Pizza Group’s 2025 financial performance proved to be mixed, with the pizza chain posting steady sales but sliding profits.

System sales (total sales for owned and franchised venues) remained solid, up 1.5% for the 52 weeks to 28 December 2025, from 2024’s £1,571.5m to £1,595.6m. This was driven primarily by increased average selling prices, with franchisees offsetting employee tax-driven cost increases.

Group revenue (including food and non-food sales to franchise partners and end-customer sales in corporate stores) was up 3.1% year-on-year from £664.5m to £685.4m. Domino’s stated that the figure was due to corporate store revenue being offset by a 0.9% decrease in total orders.

However, underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) slipped 6.6% from £143.4m to £133.9m, while underlying profit before tax slid 15% from £107.3m to £91.2m.

The pizza chain cited a “challenging consumer backdrop” as the reason for its performance during the second half of the year, with lower supply chain volumes in H2 and gross profit margin declining due to higher rebates and the impact of investment in staff skills.

It also incurred £6m of costs in 2025 on transactions that ultimately did not proceed, including an acquisition that did not complete. There was also work undertaken on a possible second brand, which has now ceased.

Nevertheless, it believes that underlying FY25 EBITDA was in line with its guidance and market expectations, and that there was positive customer reaction to its Chick ’N’ Dip chicken offer following a nationwide roll-out in September 2025.

Domino’s share of the takeaway market as a whole grew 0.3% to 7.3%, while in the UK pizza takeaway market its share was up by 7.5% to 52.6%.

During the year it opened 31 stores, slightly ahead of revised expectations.

Looking ahead, a solid Christmas trading period continued into the first nine weeks of 2026, with underlying EBITDA for FY26 tracking in line with current market expectations. New store openings are expected to be around the same level as 2025.

Nicola Frampton, who stepped up as interim chief executive after Andrew Rennie’s departure in November, said: "In 2026, we are focused on strengthening our core business and driving disciplined execution across the organisation.

“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.”