Domino’s slowing growth leaves bitter taste in City

Domino's motto is to “fuel the power of possible, one pizza at a time” — but sliding sales growth at the pizzeria gave the City a bout of severe indigestion earlier.

The shares were about as popular as the last slice in the box — tumbling 46.5p, or 12%, to 347.50p — after the franchise chain said like-for-like sales at its UK stores had slowed sharply to 3.9% in the first nine weeks of the year. That’s barely half as fast as the 7.5% registered in 2016.

Chief executive David Wild said: “There is a little bit of consumer nervousness out there, there is no question of that… We’re planning to be more aggressive in the market later in the year and intending to look at our promotional and advertising campaigns.”

Analysts said Domino’s “winter survival” campaign had flopped and noted the “soft start” to this year as pizza-lovers rein in spending.

The business, which grew full-year pre-tax profits 17% to £85.7 million, still plans to open 80 UK stores this year.