Dominos Pizza profits fall as consumers tighten spending in UK

Domino’s Pizza has reported a sharp decline in profits for the first half of 2025, with the company attributing this downturn to challenging trading conditions across the UK. The fast food giant opened only 11 new stores in the six months leading up to June, well below its earlier ambitions, as both franchisees and consumers have grown increasingly cautious.

Weaker consumer confidence ahead of the autumn budget and the impact of increased employment costs have been at the forefront of Domino’s concerns. The company now anticipates full year underlying profits to be between £130 million and £140 million, falling short of previous expectations by around £6 million. Shares tumbled more than 13 percent in morning trading after these figures emerged.

Underlying sales dipped by 0.1 percent, reflecting overall flat order numbers amid stiff comparisons to the men’s Euro 2024 football tournament, which boosted sales in the previous year. Pre-tax profits dropped from £51.3 million to £43.7 million, despite a slight 1.3 percent rise in system sales to £778 million as new outlets contributed to overall performance.

Rising wage costs, including increased national insurance contributions and a higher minimum wage from April, have made franchise partners reluctant to pursue expansion plans. The number of new store openings forecast for the year has fallen to the mid-twenties, significantly lower than the company’s earlier target of at least 50.

Domino’s chief executive Andrew Rennie acknowledged tougher market conditions, stating that positive trading in the initial four months of the year had not continued through May and June. The group is exploring greater automation to control costs, seeking efficiencies in response to these pressures.

The fast food sector as a whole has been hit by falling consumer spending, affecting rivals such as Greggs and Papa Johns. Weight-loss trends and preferences for colder food options during warmer weather have further contributed to the industry’s challenges, signalling a changing landscape for takeaway operators across the UK.