Domino's Pizza Group warns higher costs will hit profits

Domino's Pizza Group has increased spending in the business during the Covid-19 lockdown

Getty Images

17 June 2020

Pizza deliveries group Domino’s has warned costs linked to operating using social distancing measures will take a bite out of profits.

Shares in Domino’s fell 29.2p, or more than 8%, to 309.8p after the company said it had to up its spend during the Covid-19 lockdown period.

It had to spend on a number of things, including face masks for staff, changing shift patterns, and special pizza boxes to enable contact-free delivery.

Underlying profits for the six months to June 30 will be “slightly lower” than the £52.4 million recorded in the first half of 2019.

UK comparable sales rose 4.8% for the first half to June 14.

The firm said in the UK like for like sales growth has been strong during the first half of the year to date, with robust trading prior to the lockdown.

At the start of the lockdown it stopped offering customer collections, but has seen good demand for deliveries.

Dominic Paul, chief executive of Domino’s, said: "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.”

MORE ABOUT

Domino's

Domino's Pizza Group warns higher costs will hit profits

Read More