Domino’s Pizza Group (LSE:DOM) delivered a strong performance during the first half of the year, with system sales increasing 6.1% and group revenue rising 6.7%. Like-for-like sales grew 4.9%, supported by the successful launch of the CHICK ‘N’ DIP chicken range, the Italiano’s pizza collection and increased consumer demand during the FIFA World Cup period. Underlying EBITDA climbed to £66.2 million, while free cash flow increased by almost 75%, enabling the Board to raise the interim dividend while keeping leverage within its target range.
The company continued to strengthen its market position across the pizza, chicken and wider quick-service restaurant sectors. During the period, Domino’s opened its 1,400th store, maintained average delivery times of less than 25 minutes and brought a new supply chain centre into operation to improve efficiency and support future growth.
Management highlighted four strategic priorities that are expected to drive continued expansion: growing the chicken category, increasing customer loyalty, expanding sales through third-party delivery platforms and improving supply chain productivity. Positive trading in July, together with hedged input costs, has reinforced confidence in delivering full-year expectations and supporting earnings growth beyond 2026.
The company’s investment outlook is moderated by pressure on profitability and a highly leveraged balance sheet with persistent negative equity, despite continuing to generate strong cash flow. However, a relatively low price-to-earnings ratio and an attractive dividend yield provide positive support, while technical indicators remain mixed and do not point to a clear short-term trend.
More about Domino’s Pizza Group
Domino’s Pizza Group PLC is the master franchise operator for the Domino’s brand across the UK and Ireland, specialising in pizza delivery and takeaway services. The business operates through a network of franchised stores, supported by a centralised supply chain that enables consistent product quality and efficient nationwide distribution.
Alongside its core pizza offering, the company continues to expand into complementary food categories, including chicken, while investing in digital ordering, customer loyalty programmes and operational efficiency. Its strategy is focused on driving long-term growth through menu innovation, network expansion and enhanced customer experience.
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