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UK’s Domino’s expects tech investments to hit 2023 profit
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(Reuters) -Britain’s Domino’s Pizza Group Plc said on Thursday its profit this year would be impacted by
(Reuters) -Britain’s Domino’s Pizza Group Plc said on Thursday its profit this year would be impacted by investments in cloud-based technology platforms, sending its shares down more than 8%.
The company said it expects underlying core profit this year to be within market expectations, excluding about 9 million pounds ($10.69 million) to be incurred in costs from investments in two new cloud-based IT systems.
Brokerage Jefferies, however, said the outlook including investment costs implied a 7% decline from the group’s market forecast of 137.6 million pounds for 2023.
Domino’s reported 2022 underlying core profit of 130.1 million pounds, compared with 136.4 million pounds in the previous year, affected by the technology investments, higher costs and food inflation.
Shares of London-listed Domino’s, a franchisee of U.S.-based Domino’s Pizza Inc, was down 8.2% at 0900 GMT. ($1 = 0.8426 pounds)
($1 = 0.8421 pounds)
(Reporting by Muhammed Husain in Bengaluru; Editing by Savio D’Souza and Devika Syamnath)
Cloud-based technology refers to services and applications that are hosted on the internet instead of on local servers or computers. This allows for easier access and scalability for businesses.
Core profit is the profit generated from a company's main business operations, excluding any income from non-operational activities or one-time events.
Food inflation is the rate at which the prices of food items increase over time, affecting consumers' purchasing power and overall cost of living.
Technology investments refer to the allocation of resources towards acquiring new technologies or improving existing systems to enhance business operations and efficiency.
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