Domino’s shares fall as group forecasts dent in profits

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A row of mopeds operating for the Domino's Pizza takeaway chain parked in Westminster, London.

Despite an increase of orders, Domino’s Pizza expects the costs introduced during the lockdown will to hit first-half profits.

Due to the costs of introducing safety measures such as contact-free delivery boxes, issuing face masks to delivery drivers, and ensuring closed stores during restocking, the group forecast a dent in profits.

Domino’s is unsure how long these safety measures will continue so it was not able to give full-year financial guidance.

The company said: “We have also seen a change in consumer purchasing behaviour and average basket composition, with a higher proportion of sides and desserts, which, whilst aiding our sales performance, has impacted our margins.”

Domino’s chief executive Dominic Pau in the statement: “Throughout this crisis we have focused on looking after our people and working together with our franchisee partners to safely serve our customers and help our communities.”

“I am proud of the performance of our system during this period, and that the vast majority of our stores have remained open. I am looking forward to giving a more detailed update on our performance and sharing my first impressions of the business at our first half results presentation in August,” he added.

Shares of the company (NYSE: DPZ) fell 4.1% in early trade on Wednesday. They are currently trading at 374.86 (1006GMT).