Domino’s UK profit drops 15% as sales struggle hits FTSE 250 chain

The pizza chain saw underlying profit before tax fall from £107m to £91m, while total orders declined 0.9% in the year to December 2025

Domino’s Pizza has experienced a 15 per cent profit decline as it grappled with lacklustre sales and a “challenging consumer backdrop”.

Whilst overall turnover at the FTSE 250-listed pizza operator rose 1.5 per cent to £1.6bn, the like-for-like figure – excluding variables such as VAT – crept up by just 0.2 per cent in the year to December 2025.

Analysts had sounded warnings that the chain’s new “Chick ‘N’ Dip” range would detract from its core offering, but the company maintains 80 per cent of orders for the new range featured a pizza.

The group’s share price rallied on Tuesday’s market open despite the fall in profits, climbing 3.8 per cent to 193p, taking shares up more than 11 per cent in the year to date.

Domino’s is presently headed by both an interim chief executive and an interim finance director, following the sudden exit of former boss Andrew Rennie in November after merely two years at the helm, as reported by City AM.

Underlying profit before tax tumbled from £107m to £91m, whilst revenue grew by only 3.1 per cent to £685m.

Domino’s launched 31 new outlets in 2025, which was marginally ahead of forecasts, but witnessed total orders drop by 0.9 per cent.

The new launches take the group’s total franchise to 1,399 outlets in the UK and Ireland.

The pizza operator was the UK’s most-shorted business in October last year, as investors such as Blackrock and Citadel wagered that the group would suffer from escalating labour costs and weak consumer confidence. Although the intense speculation surrounding the company has subsided, leaving it as the twelfth-most shorted firm, shares have fallen 34 per cent in the past year.

Dan Lane, analyst at Robinhood, stated that the group will be banking on its new “Chick ‘N’ Dip” menu as it eyes greener pastures in the realm of fried chicken giants KFC and Popeyes.

He said: “We might not be at “peak pizza” but the company will certainly have to find a way to turn innovation into profit growth if it wants to give up its place as one of the most shorted stocks on the UK market.”

Interim chief executive Nicola Frampton stood by the new offerings, stating: “We are excited about a number of strategic and operational initiatives to drive sustainable growth, including the successful system-wide launch of Chick ‘N’ Dip.”

The fried chicken range, which Domino’s outgoing chief executive had labelled as a “bold new chapter,” will be followed up by a “pipeline” of new products, Frampton confirmed.