This article first appeared on GuruFocus .
Domino's Pizza Group ( DOM , Financials ), the UK and Ireland arm of U.S.-based Domino's Pizza, reported a 1% rise in like-for-like sales for the third quarter as consumers cut back on discretionary spending. The company said menu innovation and higher prices supported growth, though overall demand remained weak.
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Total orders declined 1.5% in the quarter, led by a 3.4% drop in delivery orders as households reduced takeout spending. The company warned that the challenging consumer environment could extend into 2026, citing concerns over potential tax increases in Finance Minister Rachel Reeves' upcoming budget. April's higher wage and business tax costs have also weighed on operators across the fast-food sector.
Franchisees have responded by raising menu prices while focusing on targeted promotions to maintain affordability. Analysts at Peel Hunt noted that early signs of improvement were emerging and that stronger growth could return in 2026 if economic conditions stabilize.
Despite softer volumes, Domino's reaffirmed its full-year earnings guidance of 130140 million and said it remains on track to open about 25 new stores by year-end. Shares of Domino's have declined nearly 40% in 2025, reflecting investor concerns over inflation and slowing consumer demand.
