Domino’s fails to break even internationally
Domino’s Pizza Group has announced that it will not break even across its international division.
Chief executive David Wild explained: “Internationally, performance remains disappointing and trading visibility is limited. As we outlined at the full year results, we have new management in Norway, Sweden and Switzerland, and a heightened focus on store level performance.”
“However, given persistently weak system sales in all our international markets we no longer expect this part of our business to break-even this year. We are therefore further tightening our focus on international costs and capital deployment.”
The news comes after the company announced mixed results back in March, with the UK business supporting the overall group as it experienced “growing pains” in the international market.
David added: “With continued like-for-like growth, the year has started well across our core UK and Republic of Ireland markets, which account for 90% of our business. Our digital expertise remains a key driver of customer engagement, with online accounting for a record 81.7% of total sales in the UK.
“We remain in open and ongoing dialogue with our UK franchisees, actively exploring win-win solutions for stimulating growth and new store openings.”
A further update is expected in the group’s half year results.
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