Domino’s Pizza Group (LON:DOM) outlined its 2025 full-year performance and strategic priorities for 2026, pointing to market share gains in a challenging quick-service restaurant (QSR) environment, continued strong free cash flow generation, and a renewed focus on operational efficiency and digital-led growth.
Leadership update and 2025 operational backdrop
Interim CEO Nicola Frampton, previously the company’s chief operations officer, said her focus since stepping into the role in November has been “stability with forward progress.” Frampton described Domino’s as operating from “a real position of strength,” citing its position as the number one pizza brand in the UK by market share, with almost 1,400 trading stores across the UK and Ireland and more than 12 million customers.
Operationally, Frampton said Domino’s ended 2025 with more than 52% market share in takeaway pizza. She noted that “independents are also taking share,” describing this as evidence that the category remains relevant even as customer preferences evolve. Beyond pizza, she said Domino’s has grown to a 7.3% share of the total £22 billion QSR market, which she framed as both a “strong platform” and an indicator of further runway for expansion.
2025 financial results: system sales, EBITDA, cash flow, and dividends
Finance director Richard (speaking during the presentation) said 2025 was a challenging year for the QSR industry and pizza delivery segment. Against that backdrop, he said the Domino’s system reached almost £1.6 billion of system sales, up 1.5%, on 71.1 million customer orders.
On a company basis, Domino’s Pizza Group delivered underlying EBITDA of £133.9 million on revenue of £685.4 million, which he said was in line with expectations but lower than 2024. Free cash flow was £80.7 million. The board recommended a final dividend of 7.7 pence per share, which he said was up 3% and reflected confidence in the opportunities ahead.
Richard said overall system ticket rose about 2.5% as the business sought to mitigate the impact of the 2024 UK budget, which brought higher employee taxation and minimum wage levels. However, system orders declined 0.9% amid a weaker UK economy, which he said affected supply chain profits. He added that collection performed particularly well “as you would expect in a tougher environment,” and said the business saw a good run into Christmas with momentum continuing into early 2026.
Revenue mix, profitability drivers, and non-underlying items
Statutory revenue increased 3.1% to £685.4 million. Richard highlighted that corporate stores revenue rose 75% to £92.9 million, driven by a full-year contribution from Shorecal, acquired in March 2024, and from the Northern Irish subsidiary Victa, where Domino’s acquired control in March 2025. Supply chain revenue declined around 4%, which he attributed partly to lower volumes, while NAF and e-commerce spending and related revenue rose in line with system sales.
Underlying EBITDA fell 6.6% to £133.9 million. Corporate store EBITDA rose almost 60% to £10.6 million, driven by Shorecal and Victa. Supply chain center EBITDA declined about 8% to £126.7 million due to reduced volumes and higher franchisee incentives. Overheads increased 13%, driven by one-off items in the first half and the annualization impact of investments in skills and capabilities made in 2024; Richard noted that net overhead increases in the second half were 5%, “very much lower” than in the first half.
With EBITDA down and depreciation and interest higher, underlying profit before tax declined 15% to £91.2 million. Underlying EPS decreased 13%, which Richard said was slightly better than the PBT decline due to the benefit of buybacks undertaken in 2024 and 2025.
Non-underlying items included a net charge of £10.1 million. Richard said transaction costs related to M&A that ultimately did not proceed totaled £6 million, and he reiterated that, as announced in November, activity related to a “second brand” has ceased. He also noted higher reacquired rights amortization tied to acquired sub-franchises, which he said would continue in future reporting.
On asset carrying values, he cited a £10 million gain on the sale of a long-term investment and an impairment on Shorecal of £10.4 million (around 12% of its carrying value). Richard attributed the Shorecal impairment primarily to higher structural employment costs following the November 2024 budget and, in Ireland, Domino’s transition to a paid delivery driver model. He said the company views these changes as permanent and adjusted carrying values accordingly.
Richard also noted a £10 million gain associated with the sale of the company’s Full House joint venture interest for £17 million in December to franchisee partners, which he said reflected long-term growth generated by the system and its partners.
Capital allocation, leverage, and investment
Richard said the group generated capital sources of around £98 million from free cash flow and the sale of Full House. In 2025, the company invested £24 million in the core business, paid more than £43 million in dividends, and invested £25.6 million in Victa to increase control to 70%.
At year-end, debt rose to £285 million from £265 million at the end of 2024, reflecting in part a £20 million buyback during the fourth quarter. Gearing increased to 2.3x, which Richard said remained within the company’s 1.5x to 2.5x target range but toward the upper end.
Investment highlights included £6 million in existing supply chain centers, where the first phases of automation are now online, and around £9 million in the new supply chain center (SCC5), with phase one expected to complete shortly and operations beginning later in the month. Domino’s also invested £7 million in digital technology, including functionality such as flexible meal deals, and £2 million in the corporate stores network. Richard noted that spending related to the company’s new ERP system and tech platform stopped in the first half and “should disappear” from future reporting.
He added that the capital allocation framework will be reviewed by incoming permanent CFO Andrew Andrea, who is set to join in mid-March. Richard also said FY2026 capital expenditure will be higher than usual, with the bulk in the first half, due to the completion of SCC5.
2026 priorities: core growth, chicken expansion, digital and AI, and efficiency
Frampton said the company’s strategy for 2026 is centered on four priorities: growing revenue through core capabilities, increasing addressable markets, accelerating digital and AI opportunities, and driving operational efficiency and cost discipline.
In the core pizza business, Frampton said the company’s ambition is to get customers to “order one more time,” supported by product innovation and a value proposition that resonates across delivery and collection. She said value-for-money perceptions have improved by 10 percentage points over the past four years. She also described a 2026 innovation pipeline spanning Italian-style pizzas, new sides, seasonal launches, and “fashionable flavors,” alongside an approach to “lighter options” built around communicating existing choices, adding lighter menu items, and thoughtful reformulation over time.
On service, Frampton said on-time delivery has improved by 6.8 percentage points over four years, with average delivery time below 25 minutes. On brand investment, she said 2025 saw increased PR and social media activation, with impressions up nearly 100% and coverage up more than 50%, and she said more brand activity is planned in 2026.
A key expansion focus for 2026 is chicken. Frampton described the chicken market as another £3 billion category where Domino’s currently holds 3.8% share, compared with its 52% share in pizza. She highlighted the nationwide launch of the Chick Dip sub-brand, which includes chicken tenders, boneless bites, wings, and nine dips. Richard noted Chick Dip launched nationwide on Feb. 9 and “has started well,” with initial trends consistent with earlier trials in Ireland and the northwest of the UK. Frampton said that in prior trials, more than 80% of Chick Dip orders included both chicken and pizza, and she described early indications that the proposition will be incremental. She added that the rollout required no additional capital expenditure and leverages Domino’s scale across 1,400 stores.
Digitally, Frampton said 84% of orders are online, nearly 80% are placed through the company’s 4.8-star app, and app customers order more frequently with higher loyalty. She said pre-shop AI tools developed with Google and Meta have increased marketing ROI by 29% since 2022, while in-app personalization investments have delivered 3.9 percentage points of conversion growth. The loyalty program reached 1.8 million active members in 2025, with functionality expansion planned for 2026. Frampton also said the company is rolling out an in-house AI quality tool, which is live in half the estate and assesses product quality in real time.
Finally, on operational efficiency, Frampton said the Avonmouth supply chain center is going live this month and is designed to support growth by optimizing distribution and routing efficiency while increasing capacity by around 1,000 additional deliveries per week. She said the network delivers 99.9% availability and accuracy across 4,200 deliveries per week. Frampton also pointed to a pipeline of productivity projects intended to remove around 280,000 hours annually by 2028, alongside tighter control of central costs through labor efficiency, process improvements, asset utilization, and procurement benefits.
Both executives pointed to improved momentum coming out of Christmas 2025, with Richard saying early 2026 trends support delivering results consistent with company and market expectations.
About Domino’s Pizza Group (LON:DOM)
Domino’s Pizza is the UK’s leading pizza brand and a major player in the Republic of Ireland.
We are part of the global Domino’s system, the biggest pizza delivery operator in the world. We hold the exclusive master franchise rights in the UK & Ireland under a long term agreement with Domino’s Pizza International Franchising Inc, the international arm of Domino’s Pizza Inc, which owns the Domino’s brand. Our core business is the UK & Ireland, where we have a clear number one market share. We operate a world-class supply chain, making fresh dough and acting as a scale and expert wholesaler of other food and non-food supplies to our franchisees.
