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Domino’s flags overseas losses

The pizza delivery company does not expect its international operation to break even this year
May 7, 2019

Domino’s Pizza (DOM) has warned that weak overseas sales during the first quarter would mean that it no longer expects its international arm to break even this year.

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Domino’s disclosed that overseas sales had come in at £25.1m, beneath the £25.6m secured this time last year. “Internationally, performance remains disappointing and trading visibility is limited,” chief executive officer David Wild said. New management is in place in Norway, Sweden and Switzerland, and Domino’s is doubling down focus on store level performance. “We are therefore further tightening our focus on international costs and capital deployment,” Mr Wild added.

The picture was better in the UK. First quarter like-for-like sales were up 3.1 per cent. Four new stores were opened, along with one closure, taking the UK total to 1,106, and three have opened since the end of Q1. However, Domino’s opened nine stores in the first quarter of 2018.

Broker Peel Hunt has cut its pre-tax profit forecast by £5m. It forecasts 2019 pre-tax profits of £94.6m, rising to £102.9m in 2020.