Domino’s revenue up 6% in six months
Domino’s reported a 6% increase in UK revenue over the first half of the year, with total earnings reaching £825 million. The growth was largely attributed to the global World Cup event and the success of the new Chick’n’dip range, according to a report from City AM. Despite the revenue boost, pre-tax profits remained unchanged at £41 million, showing a lack of significant improvement in profitability during the period.
The company also announced a 4.9% rise in like-for-like sales, a figure that surpassed the 3% growth target set by analysts at Peel Hunt. CEO Nicola Frampton highlighted the progress being made in strategic areas such as fried chicken, loyalty programs, online aggregators, and improved supply chain efficiency. These platforms, she said, are all contributing to the business's long-term growth goals and stability.
Fried chicken expands Domino’s reach
To attract new consumers and stand out in a competitive food market, Domino’s introduced a fried chicken range. Frampton, who recently became the permanent CEO in March, pointed out that the new chicken line has already shown promising results and could be expanded in the future. She emphasized that it complements the core pizza menu and opens up new opportunities for customer engagement.
The push into fried chicken came during the previous leadership of Andrew Rennie, who left the company in November last year. His efforts to shift focus to chicken were met with doubts from investors, who worried the company might be drifting from its traditional pizza business. Rennie also attempted to buy US-based chain Wingstop but failed, as it was ultimately acquired by investment firm Sixth Street in 2024.
Marketing and fan events drive sales
Domino’s saw a notable boost in sales during major events, including the World Cup. A particular spike occurred during the England match against the Democratic Republic of Congo, which generated 45,000 additional orders and became the company’s busiest game-related period. The firm also leveraged other high-profile moments, such as the Tyson Fury boxing event, to reach a broader audience and retain existing customers.
The London-listed company now operates 1,400 stores in the UK and Ireland, having opened 11 new locations in the first half of the year. Despite the strong performance in sales and customer engagement, the company's stock has lost more than half its value over the past five years, indicating ongoing concerns about long-term stability and investor confidence.