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Dominos Pizza Group, which owns, operates and franchises
Domino's stores in Britain and Ireland, said its like-for-like
system sales were up 3.7% in the third quarter.
Total orders, however, were down 1.2% to 16.7 million in the
third quarter, sending the stock shares down as much as 6.7% in
morning trade.
The group had raised prices of its products to keep up with
higher costs, but customers feeling the pinch from several
interest rate hikes and a slowing economy cut back on
discretionary expenses.
"As we look into the next year, we see inflation stabilizing and
our focus will be on continued customer and order growth, as
well as franchisee profitability," recently appointed Chief
Executive Andrew Rennie said in a statement.
The company, a franchisee of U.S.-based Domino's Pizza Inc, said
its total orders returned to growth in the fourth quarter,
prompting it to reiterate its underlying core profit outlook for
the year.
Last month, the U.S. based pizza chain also flagged tepid
performance of its delivery segment as higher charges
discouraged inflation-weary consumers from ordering.
Dominos Pizza Group continues to expect underlying core profit
in the range of 132 million pounds to 138 million pounds.
Shares in the FTSE 250 index constituent were down at 6.1% to
348 pence at 0920 GMT, while the index was down 0.3%.
(Reporting by Radhika Anilkumar in Bengaluru; Editing by Sherry
Jacob-Phillips and Miral Fahmy)
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