March 10 (Reuters) - Britain's Domino's Pizza Group on Tuesday posted a 15% fall in annual profit for a year plagued with muted demand, weak sales and high costs. The group, which operates under the
Domino's UK bets on fried chicken as food sector frets over 'peak pizza'
Domino's UK Growth Strategy and Market Performance
By Yamini Kalia
Strong Start to the Year and Market Share Gains
March 10 (Reuters) - Domino's Pizza said on Tuesday it is betting on fried chicken to fuel fresh growth in Britain, adding that demand for its pizzas had begun well this year and it gained market share.
Profit and Share Performance in 2025
Concerns over slowing demand, subdued consumer spending and rising costs weighed on Domino's UK profit and shares in 2025.
Analyst Insights on Innovation and Growth
"We might not be at 'peak pizza' but the company will certainly have to find a way to turn innovation into profit growth," Robinhood UK analyst Dan Lane said after Domino's UK reported a 1.5% rise in system sales in 2025.
Chick ’N’ Dip Fried Chicken Launch
The company, which operates under the umbrella of U.S.-based Domino's Pizza in Britain and Ireland, said it had rolled out its Chick ’N’ Dip fried chicken range last month, making it available across all stores, online channels, apps and major delivery aggregators after a successful trial.
Share Price Reaction and Christmas Trading Momentum
Shares in Domino's rose more than 5%, despite a 15% drop in annual profit, as it said strong Christmas trading momentum had carried over into this year.
Brand Identity Challenges with New Launches
Lane said Domino's will have to tread carefully with its new chicken brand in Britain, noting that Greggs has shown how difficult it is to preserve brand identity amid a flurry of new launches.
Industry Trends and Competitive Landscape
The pizza industry has struggled with slowing demand, with even Domino's in the U.S. relying on heavy promotions to beat sales estimates and Yum Brands exploring options for Pizza Hut.
Healthier Options and Market Share Growth
Domino's UK, which has introduced healthier pizza options, including lower-calorie pies, plant-based options and lighter bases, said its share of the pizza takeaway market rose 7.5 percentage points to 52.6%, citing Worldpanel by Numerator data.
Leadership Changes and Profit Outlook
The pizza chain, which saw several senior executives, including its CEO and finance chief, leave last year, said underlying core profit for 2026 is on track to meet market expectations.
Additional Information
($1 = 0.7436 pounds)
(Reporting by Yamini Kalia and Yadarisa Shabong in Bengaluru; Editing by Janane Venkatraman, Thomas Derpinghaus and Alexander Smith)
