Domino’s Pizza Group has announced that total orders for the third quarter have decreased due to softer demand. However, the company has reaffirmed its guidance for the full year.
In the aforementioned period, total orders reached 16.7 million, representing a 1.2% decline. However, year-to-date total orders have risen by 1.5%. Despite this decline, like-for-like sales saw a 3.7% increase amidst market uncertainties. Total system sales also experienced growth, rising by 5.5% to reach £363.7 million ($446.8 million). This growth can largely be attributed to the accelerated rate of store openings.
During the fourth quarter, total orders have already shown signs of recovery and have increased by 1.2%. Delivery orders, in particular, have displayed an improved trajectory, despite the challenging comparison with last year’s strong performance.
The board of Domino’s Pizza Group continues to anticipate underlying earnings before interest, taxes, depreciation, and amortization (EBITDA) to fall within the range of £132 million to £138 million. This metric excludes exceptional and other one-off items.
Furthermore, the company projects that net debt at year-end will rise to £230 million to £250 million. This revision from the prior guidance of £205 million to £225 million is due to the pace of the company’s £70 million buyback program.
At present, shares in Domino’s Pizza Group are trading at 350.40 pence as of 0827 GMT, experiencing a decline of 21.20 pence or 5.7%.