Domino's sales growth slows despite demand for thinner pizzas
Domino's has reported slower sales growth even as customers showed strong appetite for its thinner-crust range, with boss Nicola Frampton telling investors there is «a lot of work still to be done» despite a «strong performance».
Domino's has reported a slowdown in sales growth even as customers showed strong demand for its thinner pizzas, in a trading update that left the takeaway group's boss acknowledging there is «a lot of work still to be done». Chief executive Nicola Frampton described the period as a «strong performance» but conceded that the business has more to deliver, telling investors that the company is not yet where it wants to be.
The figures point to a familiar pattern for the pizza chain: solid appetite for its product, particularly the thinner-crust range that has been a focus of recent menu development, but a pace of growth that has eased compared with earlier periods. The company did not attribute the deceleration to any single factor in the update, and Frampton's remarks suggest management sees the current trajectory as a platform rather than a finished result.
Domino's has been working to refresh its offer in a competitive UK takeaway market, where it faces pressure from rival pizza chains, independent outlets and a broader shift in consumer habits towards delivery apps and value-led promotions. The thinner pizza line has been positioned as a lighter alternative for customers who want something different from the chain's traditional deep-pan and classic crusts, and the update indicates that the product has found an audience.
For investors, the key question is whether the softer growth reflects a temporary cooling in demand or a more structural challenge. Frampton's language — praising the performance while flagging outstanding work — is characteristic of a management team that wants to show progress without overpromising. Shares in the London-listed group have been sensitive to trading updates in the past, and the market will be watching for signs that the thinner-crust push can translate into sustained momentum.
The update also comes against a backdrop of cost pressures across the food sector, including ingredients, energy and staffing, which have squeezed margins for operators large and small. Domino's has sought to protect its position through promotional activity and menu innovation, but those levers can be expensive to maintain if sales growth is slowing.
Frampton's comments suggest the company is not treating the current numbers as a ceiling. The reference to «a lot of work still to be done» signals that further changes to the offer, marketing or operations are likely as the group tries to convert customer interest in products such as the thinner pizzas into stronger overall growth. For now, the message to investors is that demand remains healthy in parts of the range, even if the headline growth rate has lost some pace.
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