Domino’s Pizza Group (LON:DOM) said it delivered a strong first half, with positive like-for-like sales in every month of the year and continued confidence in its fiscal 2026 expectations, as management highlighted growth from pizza, chicken, loyalty initiatives and supply-chain efficiencies.
The company said its first-half performance received a modest tailwind from the World Cup, reflecting Domino’s role in group gatherings and football-related occasions. However, management said the sporting event was not material to reported sales growth because like-for-like sales had remained positive throughout the year.
Andrew Rennie, Domino’s former CEO, said order growth indicated that the company was selling more products rather than relying solely on pricing. He described approximately 2% growth driven by volume and roughly 3% inflation-related price growth.
Franchisee profitability and store strategy
Management said franchisee profitability was improving compared with 2024 and 2025, supported by higher sales and a shared strategy focused on strengthening the core business. The company said franchisees were aligned around “growing the pie,” rather than pursuing growth solely through additional store openings.
Domino’s has more than 1,400 stores open and has opened 11 stores year to date. However, management said new-store economics have become more challenging, particularly because franchisees are facing higher labor costs, taxes and other operating expenses.
The company said it would not pressure franchisees to open locations simply to meet a store-count target. Rennie said new openings should be viewed as “the icing rather than the cake,” with growth expected to come primarily from better performance at existing stores, improved returns on capital and stronger franchisee economics.
Management also said franchisee performance varies more by region than by franchisee size. London remains a particularly competitive market, and Domino’s said aggregator platforms can be important in reaching consumers in areas where customers are more likely to use those services.
Automation and supply-chain initiatives
Domino’s said it is pursuing several supply-chain projects aimed at reducing labor costs and improving distribution efficiency. These include warehouse automation, dough-production automation and warehouse-packing initiatives.
At one site, an upgrade is expected to eliminate a full afternoon shift. The opening of the company’s SCC5 supply-chain center has also enabled delivery routes previously served from Milton Keynes to be rerouted, allowing some Southwest deliveries to be completed by one driver instead of two.
Management said a number of full-time-equivalent roles had already been removed and that benefits should begin to flow through in the second half. Rennie said first-half supply-chain margins were slightly behind because of one-off costs related to automation, while a greater share of the benefits is expected in 2027 and 2028.
On broader overheads, Rennie said costs remain under constant review, though he did not see “a swathe of overhead” available for removal. He said any efficiency efforts would need to be balanced against investment in technology, artificial intelligence and growth initiatives.
Loyalty, digital investment and marketing
Domino’s plans to launch a fully updated loyalty program toward the end of the year through third-party provider Open Loyalty. The existing program has 2.2 million customers, while management said the company has a broader customer base of about 14 million that represents a substantial opportunity for recruitment and increased ordering frequency.
The new platform is expected to offer deeper personalization, the ability to reward different customer behaviors and the capability to recruit prospective customers directly into the loyalty scheme. The current program is invitation-only and has limited functionality, based largely on a stamps-for-a-free-pizza model.
Management said the new scheme has been modeled jointly with franchisees and includes costs for both Domino’s and its franchise partners. Those costs are already included in company guidance, according to Rennie.
Domino’s said it continues to invest around £8 million annually in its e-commerce platform. Management said the loyalty investment would provide richer customer data that can be used to personalize app experiences and marketing, without requiring significant additional investment specifically for personalization.
The company said restrictions on advertising high-fat, salt and sugar products before 9 p.m. had not produced a meaningful negative impact on sales or order counts. It has redirected media spending to compliant channels and uses artificial intelligence tools to support media buying and evaluate returns on marketing investment.
Chicken, aggregators and capital allocation
Management said customer awareness of its chicken proposition was already at a high level, although it was too early to provide a long-term assessment following the February launch. Among customers who had tried the product, roughly 80% were described as highly satisfied.
The company said chicken remains an immature proposition with further opportunities in flavors, dips, coatings and complementary side dishes. Management said it was not planning to expand rapidly into unrelated menu categories, preferring to develop chicken further while exploring healthier and lower-calorie side options.
Domino’s operates on two aggregator platforms and said both are generating similar levels of incremental demand. While the company does not disclose the order mix from aggregators, management said the channel was not growing to a level that caused concern and was attracting somewhat younger and more affluent customers. Higher-frequency “champion” customers continue to order directly through Domino’s app, management said.
Rennie said capital allocation would prioritize organic investment, maintenance capital expenditure of around £20 million subject to a 20% hurdle rate, and maintaining the dividend in line with inflation. Remaining cash would be used to reduce debt and leverage.
He said the company expects leverage to move toward 1.5 times within two to three years, after allowing for a temporary increase to 2.3 times related to investment in the supply-chain center. Domino’s is also evaluating the size and duration of a refinancing of a £200 million U.S. private placement tranche, with Rennie indicating the replacement amount would likely be below £200 million.
About Domino’s Pizza Group (LON:DOM)
Domino’s Pizza is the UK’s leading pizza brand and a major player in the Republic of Ireland.
We are part of the global Domino’s system, the biggest pizza delivery operator in the world. We hold the exclusive master franchise rights in the UK & Ireland under a long term agreement with Domino’s Pizza International Franchising Inc, the international arm of Domino’s Pizza Inc, which owns the Domino’s brand. Our core business is the UK & Ireland, where we have a clear number one market share. We operate a world-class supply chain, making fresh dough and acting as a scale and expert wholesaler of other food and non-food supplies to our franchisees.
